20 billion reasons why Apple could head for a crash

• Apple is dependent on an enormous payment of alphabet in order to make Google the standard search engine for its products.

• Apple's executives are concerned to lose these income.

• Apple's share is already praised for perfection.

• 10 shares that we like better than Apple '

Apple (Nasdaq: AAPL) is one of the most profitable companies in the world. It deserves the majority of its profits from the turnover of different devices and services, but a source of profit is more lucrative than any other: the money that alphabet (Nasdaq: Goog) (Nasdaq: Googl) Apple pays to ensure that the search engine is the standard selection for iPhones.

Alphabet paid Apple 20 billion US dollars in 2022, but in the following years there is no public information about this payment. However, it is of great importance that the Vice President of Apple, Eddy Cue, recently said in a certificate from the Federal Court that he “loses sleep” if the thought of losing this income “loses sleep”.

Since this turnover Apple does not cost anything, there is a high probability that it will go directly into the end result of Apple. Apple's share could be prepared for a crash if this source of profit disappears.

CUE was testified before a federal court on the ongoing Google search engine of illegal monopoly. The 20 billion dollars payment from Alphabet was a large part of this case, which was described as the exercise of its dominance and size to ensure that others could not take their place as the top search engine option.

While investors still do not know how the relationship between the companies will have an impact, Cue mentioned that he believes that the AI-powered search will finally replace the conventional search that Google operates. As a result, it may not be worthwhile that Alphabet Apple can pay the 20 billion US dollars anyway.

Regardless of whether traditional search engines are finally eliminated or alphabet is excluded from the payment of Apple as a standard search engine, the payment of $ 20 billion is in danger.

This is probably also a pure profit for Apple. But how much would Apple cost if it had disappeared? Quite a lot.

In the past three years, Apple's 12-month net income has essentially traveled or somewhat below the $ 100 billion mark.

If Apple lost this lucrative payment from alphabet, Apple's net income would probably drop by 20%. Since Apple is a fully mature company in which investors mainly concentrate on profits, this decline would probably correspond to a similar level of the share price drop.

A short decrease of 20% would probably cause investors to call it a “crash”. So this is a reality that Apple must address. However, there is another danger that the apple owners will be exposed.