Apple Inc Updates
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Apple and Epic Games both claim that Apple won the bitter legal battle about the App Store fees. The reality is that none of the parties came forward completely intact.
Epic’s decision to wage war on Apple’s 30 percent commission for in – app purchases seems to be an end in itself. It has lost in most areas and has to pay commission for payments that have surpassed Apple’s system. Nor did it prove that being great is the same as being a monopolist.
Still, Apple’s days in which developers are silenced, which want to tell customers that they can download games and make purchases outside the App Store, seem to be numbered. It has the potential to reduce revenue at one of the companies with the highest margin.
Apple says its control over in-app payments, which runs through its own payment system, helps protect developers and users from possible fraud. Epic is not the only company that does not agree with the claim. Match Group, which owns Tinder, said Apple’s program policies remove the choice for consumers.
Apple does not disclose the revenue from the App Store, but decides to increase the fees of the App Store in service revenue, which amounted to almost $ 54 billion in the past financial year. Jefferies estimates the figure at $ 18.5 billion for 2020. If developers encourage users to pay elsewhere in 20 percent of purchases, Apple will lose about $ 4 billion.
However, do not reduce the apathy of users. By clicking on a new link, users can completely prevent them from making purchases. Staying with Apple’s payment system may be the easiest option for most app developers.
More importantly, Apple’s value of $ 2.5 tons is still tied to smartphones, which accounted for half of all sales last year. This week a new iPhone is launched. Continued demand for phones with 5G indicates a hit. Wedbush estimates that 250 million of Apple’s nearly billion iPhones have not been upgraded in more than three years, meaning a large number of potential buyers. That should be more than enough to obscure an epic battle.
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