11:56 AM EST, 02/05/2025 (MT Newswires) -- Apple ( AAPL ) faces a potential investigation by Chinese regulators, specifically the State Administration for Market Regulation, into its App Store fees and policies that restrict third-party payment providers, which highlights broader tensions between China and US technology companies, Wedbush said in a note Wednesday.

Wedbush analysts said word about a potential probe "is less about revenue impact and more about the overall tone for Cupertino and Big Tech in China."

The probe is more symbolic, reflecting geopolitical tensions rather than a serious financial threat to Apple's ( AAPL ) business, as the company earns about $5 billion annually from its App Store in China, significantly less than in the US or Europe, according to the note.

The potential investigation is part of a broader pattern of Chinese regulatory actions against US tech companies amid trade tensions, including an antitrust probe into Alphabet's (GOOG, GOOGL) Google ( GOOG ) and potential retaliatory moves related to the TikTok sale, Wedbush added.

The brokerage has an outperform rating on Apple's ( AAPL ) stock with a price target of $325.

AAPL shares were down 0.9% in recent trading.

Price: 230.45, Change: -2.35, Percent Change: -1.01