Apple in Deal With Amazon Allows Prime Video Users to Make In-App Purchases
Apple Inc. (AAPL) is allowing Amazon.Com Inc.’s (AMZN) Prime Video subscribers to buy or rent video content using the e-commerce company’s app on their iPhones and other Apple devices.
The deal marks a change in Apple’s policy. Previously the tech giant had a policy of taking a 30% cut from all content purchased inside video apps on its iOS devices. Now providers can charge consumers directly using their own payment systems without paying a commission to Apple.
Five-star analyst Jim Kelleher at Argus Research this week reiterated his Buy rating for the stock, citing Apple’s “multiple strengths” to carry it through a difficult period, which includes wearables, services, and a strong online business.
Overall, Apple has a Moderate Buy consensus rating based on 35 analysts covering the stock. The consensus rating breaks down into 24 Buys, 9 Holds and 2 Sells. The $316.16 average price target indicates a 32% upside potential for the shares in the coming 12 months. (See Apple stock analysis on TipRanks)
Amazon enjoys a Strong Buy consensus rating from the 37 Wall Street analysts covering the stock in the last three months who are split into 36 Buys and 1 Hold. The $2,432.91 average price target implies a 28% potential gain in the shares in the coming 12 months. (See Amazon stock analysis on TipRanks)
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