Hua Er Jie Jian Wen·2025-09-03 12:30Core Viewpoint - The recent court ruling in the Google antitrust case has unexpectedly benefited Apple by allowing Google to continue paying over $20 billion annually for default search engine fees, thus protecting a crucial revenue source for Apple [1][7]. Group 1: Court Ruling Implications - The U.S. District Judge Amit P. Mehta ruled against the Department of Justice's request for severe measures, such as forcing Google to divest its Chrome browser, while allowing Google to pay for product distribution [1][5][6]. - The ruling is seen as a significant victory for both Google and Apple, safeguarding their $20 billion annual partnership and core business model [1][7]. Group 2: Financial Impact on Apple - Although the $20 billion payment represents only about 5% of Apple's annual revenue, it contributes significantly to profits, with Apple's services business yielding a gross margin of 75% compared to 37% for hardware [7]. - The ruling comes at a critical time for Apple, as iPhone revenue growth has averaged only 2% over the past three years, with projections of less than 4% growth for the upcoming fiscal year [7]. Group 3: AI Considerations - The rapid development of AI technology was a key factor in the judge's considerations, as it is changing the competitive landscape and posing a threat to Google's traditional search business [4][10]. - The judge emphasized the importance of allowing market forces to operate naturally, particularly in the context of evolving AI technologies [5][10].