Apple’s Tim Cook Connects with UK Prime Minister amid Regulatory Pressure

Strengthening Ties: Apple Inc. AAPL CEO Tim Cook met with U.K. Prime Minister Keir Starmer on Wednesday. Their discussion comes as both Apple and Alphabet Inc.’s GOOG GOOGL Google face intensified scrutiny in the country.

Key Highlights: Starmer emphasized the need for businesses to work together to strengthen the economy. He expressed appreciation for Apple’s investment in the U.K. and acknowledged the launch of Apple Intelligence, showcasing the capabilities of the U.K.’s tech industry.

Background Context: This meeting aligns with a broader agenda to promote technology investments, which is a top priority for the Prime Minister. Cook’s upcoming meeting with King Charles showcases the importance of royal engagement in business matters.

Apple has injected $23 billion (£18 billion) into the U.K. over the last five years, as confirmed by a spokesperson for Starmer. This financial backing signifies the company’s commitment to the region.

In terms of growth, Apple’s U.K. engineering teams have doubled in size within five years, furthering the company’s footprint in the region. Around 550,000 jobs in the U.K. are supported through its investments, including those in Apple TV+, Apple Intelligence, and Private Cloud Compute technologies.

The Bigger Picture: Cook and Starmer’s meeting comes during a challenging time for Apple regarding legal and regulatory issues in the U.K. Recently, a consumer group known as Which? initiated a £3 billion ($3.81 billion) lawsuit against Apple. This claim accuses Apple of violating U.K. competition laws via its iCloud service, specifically suggesting that the company misled consumers regarding storage options.

Moreover, the U.K.’s Competition and Markets Authority (CMA) is contemplating an investigation into the mobile browser market, examining potential antitrust issues related to Apple and Google. The CMA has raised concerns that Apple’s practices might stifle competition and innovation on its iPhones.

Stock Performance: Apple’s stock slightly dipped by 0.52% on Wednesday, closing at $246.49. However, in pre-market trading on Thursday, it climbed 0.18% to reach $246.93. Year-to-date, Apple shares have appreciated by 32.78%, outperforming the Nasdaq 100 index which rose by 31.55%, according to Benzinga Pro data.

Analysts have set an average price target of $242.26 for Apple’s stock, with Wedbush recently placing the highest target at $300 on November 29. Current ratings from Needham, Wedbush, and Morgan Stanley project a mean target of $277.67, indicating a potential upside of 12.45% from its current value.

Next Steps: Investors and industry watchers will keenly observe how Cook’s discussions with the U.K. leadership unfold, especially concerning regulatory challenges and the plans for future investments.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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