Apple Continues to Defend the App Store!

  Apple Continues to Defend the App Store! Apple (AAPL) continued to advocate for the App Store, releasing a new study focused on small developers who have found success in the online marketplace. AAPL released its study, “A Global Look at the Apple App Store Ecosystem,” on Wednesday. The study, conducted by Analysis Group, revealed that total invoices and sales in the App Store reached $643 billion in 2020, up 24 % from the previous year. A week before the said study, Apple AAPL (NasdaqGS) $123.90 -1.16(-0.93%) and Epic Games had a showdown in the courtroom. Epic argues that it is unfair for Apple to require developers to use its proprietary payment system when selling through the App Store. The company requires developers to pay a 30 % commission on app sales. If Apple loses the case, it may have to change the fee structure or allow third-party app stores on the iPhone. One of the most striking statements in the study is as follows: “Other monetization strategies include selling digital goods and services outside of the App Store that can be used in apps on Apple devices, selling physical goods and services, and serving ad-supported content that the study reads.”

Apple (AAPL) continued to advocate for the App Store, releasing a new study focused on small developers who have found success in the online marketplace.

The study also points to the success of companies creating apps for iOS in the US and Europe, showing that 75 of these businesses have gone public or acquired since 2011. The Company has made defending its App Store policies a top priority, going so far as to have CEO Tim Cook on the witness stand during the Epic trial. During his testimony, Cook described the App Store as an "economic miracle". He also said that opening the iOS platform to third-party app stores would invite malware and cause security issues for Apple's customer base. Rather than distributing revenue from App Store commissions, Apple bundles it with its Services segment. Still, this business, which includes subscriptions to Apple TV+, Apple Music, and iCloud, accounts for about 20 % of Apple's total $274 billion in revenue this year.  

Source: finance.yahoo.com

 

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