Apple/Epic: iPhone 13 will eclipse the App Store case

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Apple update

Both Apple and Epic Games claim that Apple won Legal battle Exceed the App Store fee. The reality is that neither party has appeared completely intact.

Epic decided to fight Apple’s 30% in-app purchase commission, which seems like a goal of its own. It fails in most cases and must pay commissions for payments that bypass Apple’s system. It also failed to prove that being big is the same as being a monopolist.

However, Apple’s days of silence for developers who want to tell customers that they can download games and purchases outside of the App Store seem to be numbered. This could reduce the revenue of one of the company’s most profitable businesses.

Apple said it controls in-app payments through its own payment system, which helps protect developers and users from potential fraud. Epic is not the only company that disagrees with this statement. The Match Group, which owns Tinder, said that Apple’s application policy eliminates consumer choice.

Apple did not disclose the revenue of the App Store, but chose to include App Store fees as service revenue, which reached nearly 54 billion U.S. dollars in the last fiscal year. Jefferies estimates that this figure in 2020 is 18.5 billion U.S. dollars. If developers encourage users to pay elsewhere in 20% of their purchases, Apple will lose about $4 billion.

However, don’t ignore the user’s indifference. Clicking on the new link may prevent the user from making a full purchase. For most app developers, sticking to Apple’s payment system may be the easiest option.

More importantly, Apple’s US$2.5 trillion equity value still relies on smartphones, which accounted for half of all sales last year. The new iPhone was launched this week. The continued demand for 5G-enabled mobile phones shows that success is being achieved. Wedbush estimates that 250 million of Apple’s nearly 1 billion iPhones have not been upgraded for more than three years, which means a huge number of potential buyers. This should be enough to overshadow the epic battle.

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