• Europe's highest court has decided that Apple Inc. must pay Ireland $14 billion in back taxes, concluding an eight-year legal dispute.
• Apple has criticized the European Commission for retroactively altering tax regulations.
• As Apple unveils the iPhone 16 series featuring their first AI-integrated smartphone, this major tax ruling coincides with a significant evolution in their product line.

Europe's highest court has ruled that Apple Inc (NASDAQ:AAPL) must pay Ireland $14 billion in back taxes, ending an eight-year legal battle.

The case, started by the European Commission in 2016, claimed that Ireland gave Apple illegal tax benefits, a point the Irish authorities strongly disputed.

Although both the Irish government and Apple are disappointed, Ireland has agreed to comply with the court ruling and collect the taxes.

Apple criticized the European Commission's decision to change tax rules retroactively, viewing it as a bad precedent for business in the EU.

This major ruling comes as Apple launches the iPhone 16 series, marking a key step in their product line with the new Apple Intelligence AI, their first AI-integrated smartphone.

This technology aims to transform user interaction with improved features in photo editing, message writing, and real-time answers, setting a new benchmark in smartphone intelligence.

However, this advancement appears as market trends shift, with more consumers keeping their phones for over three years. This change challenges the premium smartphone market, making companies like Apple rethink their strategies.

Unlike competitors Samsung and Google, who have already implemented AI features, Apple has taken a careful approach, focusing on refining its AI before launching.

This strategy could enhance Apple's reputation for quality and innovation, as these features will only be available on the newest and most expensive models, potentially encouraging upgrades for those with older devices.

Apple's stock is currently consolidating, trading between a support level of $200 and a resistance level of around $235 since mid-July. This follows a strong rally earlier this year, where the stock rose 15% year-to-date.

In May and June, it increased 23%, going from a low of $164 in April to surpassing the 2023 high of $199. Historically, Apple's stock has shown consistent growth, with occasional sharp declines and periods of consolidation.

This current consolidation phase requires patience from investors as they watch for a potential breakout above the resistance, which could indicate another strong bullish phase.

After the closing bell on Wednesday, September 11, the stock closed at $222.66, trading up by 1.26%.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.