The majority of the App Store‘s revenue comes from users who play mobile games. This information was disclosed in the decision of the court of Epic Games case against Apple, released today. Recall that Epic was unable to prove that Apple is a monopoly; but achieved an order for Apple to allow the publication in applications of links to third-party payment systems.
According to the ruling, revenues from gaming applications account for about 70% of all App Store revenues. The court stated that less than 10% of the app store’s users generate that 70% of the revenue. Plus, over 80% of all accounts generate no revenue for Apple at all; and 80% of all apps in the App Store are free.
Apple has received a 30% commission for in-app purchases distributed through the App Store over the years. Developers argued that Apple’s app store rules were unfair to small companies; and last year the California tech giant cut commissions to 15% for apps with annual sales of less than $ 1 million.
Apple itself does not disclose how much revenue the App Store brings to it. According to CNBC’s analysis, app store sales last year were about $ 64 billion.
Gizchina News of the week
Spotify, Netflix and More Stocks Rise After Apple Allows App Store Fee-Free Subscriptions
The streaming audio service Spotify surged more than 6% on Thursday after Apple announced a change in App Store rules that Spotify previously said would seriously harm its business. On Wednesday, Apple said that apps that provide content by subscription can now receive payment through third-party services, bypassing the App Store and, accordingly, its commissions of 15-30%.
The new rules will allow streaming services to generate higher revenue from iPhone users’ subscriptions, while not sacrificing the benefits of being on the App Store. Spotify’s lawyers acknowledge that the App Store policy changes will have a positive impact on the company’s business. Spotify complained about the App Store rules back in 2016, when an app for accessing a streaming service was removed from the store due to a direct link to a paid subscription.
Spotify isn’t the only company to see shares rallying after the App Store rules were relaxed. Netflix rose 1%, while Match Group, which owns Tinder, gained 6%. Netflix is currently displaying a message stating that users are unable to subscribe in the iOS app; directing those wishing to sign up to its website.
It’s worth noting that Apple’s concessions, which the company made as part of the agreement with the Japan Fair Trade Association, does not apply to all applications in the App Store. Gaming apps still can’t bypass Apple’s payment system.
