CUPERTINO, Calif., Oct. 16, 2024 Investment resarch firm Jefferies believes that if the Department of Justice's antitrust action against Google (GOOG, Financial) turns out to be successful, Apple (AAPL, Financial) could lose to one-third of its income from the search behemoth. Targeting Google's partnerships with smartphone manufacturers including Apple, the lawsuit is likely to have major financial reprecussions should the case result in changes in revenue-sharing rules. According to Jefferies analyst Edison Lee, the legal procedure could potentially take up to three to eight years to clear out, with Apple losing one-third of its U.S. Google income. Lee highlighted that, while the potential income loss remains alarming, and in the near-term sales of the iPhone 16 and the introduction of Apple Intelligence have become critical. With around half of Apple's yearly profits coming from the iPhone, it is still the biggest revenue source for the business. Despite the antitrust concerns, Apple's core products are likely to be at the top of the priority list for investors at this point.

This article first appeared on GuruFocus.