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Will Apple Stock Fall After the Latest iPhone Breach?

Simon Mugo trader
Updated 3 Feb 2022

Trade Apple Shares Your Capital Is At Risk

Key points:

  • An iPhone flaw has been exploited, according to Reuters
  • A second Israeli spy firm is behind the breach
  • Will Apple's shares fall?
  • key point

Also Read: Who Are Apple’s Competitors?

Apple shares were down 1% premarket before the latest story about forced entries into iPhones without the owners’ permission was published by Reuters.

The story follows a similar expose published last year where an Israeli spy firm known as NSO Group was found to have breached iPhones using their ForcedEntry technology to spy on users.

Apple later sued NSO Group, saying that the spy firm has breached its User terms and conditions, with the company claiming to have done nothing wrong, but the case is still in its early stages.

Today’s hack was executed by QuaDream, another Israeli spy firm that competes with NSO Group. Many cybersecurity experts have opined that the hack is very similar to what the NSO Group did last year.

These spy firms usually sell their spying technology to governments worldwide with the main goal of thwarting terrorist attacks and keeping their citizens safe.’

However, many governments use the same software to spy on foreign dignitaries such as diplomats, stifle opposition, and suppress civil society groups.

Numerous questions now abound as to whether governments should have such powers in their hands, which they tend to abuse in many cases. But, of course, no government is above abusing such powers, given that even Jeff Bezos complained that US government agencies were spying on him after his affair was exposed.

Many human rights groups have opposed such technologies despite many governments arguing that they are necessary to help ensure the security and safety of their borders and citizens.

Still, we have to acknowledge the important role that Apple has played in protecting iPhone users privacy on the internet while resisting US government pressure to leave backdoors for government agencies in its software and hardware.

Among all the leading smartphone manufacturers, Apple is the only one that has prioritised its users’ privacy requiring most apps to ask for a user’s permission before tracking their online activity.

Therefore, I believe Apple will continue to stand out despite the repeated attacks on its iPhones by the spy agencies and will win over time as it continues fixing the vulnerabilities exploited by hackers globally.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading