iPhone maker Apple (AAPL) has challenged a UK Government’s order, which seeks to have a “back door” entry into its devices. A “back door” entry means allowing the government or security officials access the personal data of millions of Apple users. The data is stored in Apple’s highly secured iCloud storage systems. The news was first reported by the Financial Times, citing people familiar with the matter.
Apple Is Not Bowing to the Government’s Pressure
Apple has appealed to the Investigatory Powers Tribunal in the UK, in what may be one of the first cases of its kind, where an American tech giant is challenging the UK government’s demand. The appeal was made last month, about the same time when Apple withdrew its Advanced Data Protection (ADP) feature in the UK, which is the most advanced end-to-end encryption for its cloud data.
This feature would not allow even Apple’s tech to access any of the users’ personal data. By removing the feature, Apple is now able to access a limited number of apps’ data such as iMessages and share it with the government, if the need arises. The fight between the two parties has been ongoing since years.
Apple is against the “back door” entry system since it makes the cloud data vulnerable to hackers and malicious agents. In the U.S. also, Apple is fighting against the regulators’ demand for the unauthorized access to its iCloud data. Meanwhile, governments believe that such access could help them to strengthen national security and enhance mass surveillance.
Is it Safe to Invest in Apple?
As a company, Apple is doing its best to withstand the government’s pressure and protect its users’ privacy. Apple, indeed, is favored by several Wall Street analysts. On TipRanks, AAPL stock has a Moderate Buy consensus rating based on 18 Buys, 11 Holds, and four Sell ratings. The average Apple price target of $250.48 implies 6.2% upside potential from current levels. In the past year, AAPL stock has gained 39.3%.
