Twitter Ban and Apple Stock Price Implications

MoneyBestPal Team
A box with Twitter logo on an Apple Macbook Air on a wooden table
Image: Freepik

Elon Musk said in a string of tweets on Monday that Apple Inc. (AAPL) had threatened to remove Twitter Inc. from its app store without giving any justification. Additionally, he asserted that the maker of the iPhone had stopped placing commercials on social media platforms. The affluent CEOs of Twitter and Tesla stated that Apple was pressuring Twitter to comply with its demands for content censorship.

Why Apple Stock Prices Matter

Because Twitter is one of the most downloaded apps from the App Store, Apple stock prices are important. It would directly affect Apple's bottom line if Twitter were to be removed from the App Store.

For many people, Twitter is a crucial application. It serves as a forum for information, dialogue, and networking. It serves as a connection to the outside world for certain people. It serves as a means of reaching clients and promoting goods for businesses.

Twitter's removal from the App Store would have a negative financial impact on Apple. Losing Twitter would result in a considerable loss of revenue because Apple deducts 30% of all app sales. Additionally, it would probably result in a decrease in App Store traffic overall as users flocked to alternative platforms to satisfy their Twitter cravings.

The simple truth is that because Twitter is a significant component of the App Store ecosystem, Apple stock prices matter. Twitter's removal from the App Store would have a negative financial impact on Apple.

The Financial Impact of the Twitter App Being Pulled from the App Store

If you own Apple (AAPL) stock, you probably want to know how the price of the stock will change if Twitter is removed from the App Store. There is no simple solution, but we may consider how this can affect the economy.

To begin with, it's significant to remember that Twitter is really one of the many programs offered on the App Store. There are therefore numerous alternatives for users even if it is removed. However, because Twitter is a widely used software, its removal would probably have a detrimental effect on Apple's revenue.

Take the hypothetical case where 10% of Apple users only use Twitter. A loss of $2.5 billion in annual revenue for Apple would happen if those people stopped using Apple completely as a result of Twitter's demise. However, it illustrates the potential financial impact of losing such a well-liked software. Of course, this is only a hypothetical situation.

It's also important to note that Apple has a solid reputation for quality and a devoted following of customers. It's unlikely that mass migration to other platforms would result if Twitter were to be removed from the App Store, even if it did. To put it another way, even while the removal of Twitter from the App Store might cause Apple some short-term discomfort, the business is expected to weather the storm and come out on top in the long run.

What Other Apps Could Be Affected

It's possible that other apps might suffer if Twitter gets removed from the App Store. As an illustration, if you use Twitter to sign in to another app, that program can stop working. Any app that depends on Twitter for content or functionality may also be affected. Many people rely heavily on Twitter as a source of news and information. Users would probably turn to alternative news sources like Facebook or Google News if they were to vanish from the App Store. This might affect such sites' traffic and user engagement in a negative way.

In the event that further apps break its rules, Apple may also remove them from the App Store. For instance, if it is discovered that an app is disseminating lies or hate speech, it may be taken down. The remainder of the App Store ecosystem would be impacted by this.

Additionally, removing Twitter from the Software Store can serve as a model for other app creators. What's to stop Apple from doing the same to other apps if they can just remove an app out of nowhere without giving any prior notice or justification? This might make developers fearful, which would prevent them from being creative and innovative on the platform.

In other words, it's feasible that other apps might be impacted in a variety of ways if Twitter is removed from the App Store.

Need help building your portfolio? Use our free portfolio optimizer