When prominent tech analyst Gene Munster was asked on CNBC recently whether he was worried about the fate of Apple’s (AAPL) revenue from Alphabet (GOOG, GOOGL), the analyst replied that the issue was one of the problems “that makes (him) not rest well at night.”
According to CNBC, the revenue from GOOG accounts for 25% of AAPL’s operating income.
A wide view of an Apple store, showing the range of products the company offers.
A longtime, well-known tech analyst at investment bank Piper Jaffray, Munster is now the Managing Partner of Deepwater Asset Management.
Munster’s Thoughts on AAPL’s Revenue From GOOG
Acknowledging that AAPL obtains a great deal of revenue from GOOG, Munster said that the fate of the revenue is related to AAPL’s legal battles with Epic Games.
A federal court, responding to Epic’s complaints about AAPL, recently ruled that AAPL had violated an injunction restricting the fees that it charges on app sales made outside of its ecosystem. The tech giant responded by allowing the owners of App Store apps to direct users to their own websites.
However, Munster did say that he expects AAPL “to prevail” against Epic Games.
Munster Remains Largely Bullish on AAPL Stock
AAPL has 1.5 billion “customers that love their products (and) they’re not going anywhere,” Munster said.
He added that investors will have faith that the company can overcome its challenges and ultimately boost its growth meaningfully in 2026.
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This article is originally published at Insider Monkey
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