Potential Microsoft app store would be 'immaterial risk' to Apple: Morgan Stanley
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If Microsoft (NASDAQ:MSFT) were to launch an app store for smart devices as soon as 2024, assuming its deal with Activision Blizzard (ATVI) closes, it would be an "immaterial risk" to Apple (NASDAQ:AAPL), Morgan Stanley said on Tuesday.
Analyst Erik Woodring, who has an overweight rating and $180 a-share price target on Apple (AAPL), noted that Microsoft's (MSFT) app store option would impact just 3% of Apple's App Store revenues and less than 1% of its total sales and earnings. 
Woodring said in a research note that due the focus of the Digital Markets Act for now being just upon Europe, a "worst case" view of a Microsoft (MSFT) app store taking all of Apple's (AAPL) App Store gaming revenue in Europe would equate to just 8% of total App Store sales. Woodring added that such a situation would also only only equate to 2% of Apple's services revenue and 1% of Apple's total sales and earnings per share.
On Monday, Microsoft (MSFT) gaming chief Phil Spencer said in an interview with the Financial Times that the company was looking into whether a Microsoft app store would be feasible.
Citing Morgan Stanley's survey work, Woodring also noted less than 30% of Apple (AAPL) users in the U.S. and China - the company's two biggest markets - would be willing to buy apps directly from the developer and that the apps would have to be roughly 35% cheaper for them to do so. 
Apple (AAPL) and Microsoft (MSFT) shares were both little changed in premarket trading on Tuesday.
Last week, investment firm KeyBanc Capital Markets said its proprietary data showed February spending on Apple (AAPL) products and services was above the three year average.