Currently, app developers like Epic Games can publish its applications on Apple’s operating system for free. I expect this to have at most a 2% headwind to overall revenue and 4% to earnings.”ĭeeper implications of the App Store with this ruling remains to be seen. As for impact, overall the App Store is about 7% of total revenue and 14% of profits. “Epic won the steering count and Apple won that it’s not a monopoly. “It’s a mixed bag for both Apple and Epic,” he said. Gene Munster, managing partner and cofounder of venture firm Loup Ventures, agrees. But Apple wants to have complete control, and that is clearly not what happened.” “The ruling is irrelevant in terms of how much of a financial impact it will have on Apple. “The ruling is definitely not as positive as Apple is trying to make it,” said Harsh Kumar, an analyst at Piper Sandler. No mention of the new requirement for alternative app store payments. She adds: “We are still analyzing the decision which is 180 pages long but the headline is that Apple’s app store business model has been validated.” “The Court has confirmed, after reviewing evidence from a 16-day trial, that Apple is not a monopolist in any relevant market and that its agreements with app developers are legal under the antitrust laws.” “We are very pleased with the Court’s ruling and we consider this a huge win for Apple,” said Kate Adams, senior vice president and general counsel at Apple, in a statement the day after the verdict was announced. We remain committed to ensuring the App Store is a safe and trusted marketplace.” “As the Court recognized ‘success is not illegal.’ Apple faces rigorous competition in every segment in which we do business, and we believe customers and developers choose us because our products and services are the best in the world. “Today the Court has affirmed what we’ve known all along: the App Store is not in violation of antitrust law,” the statement read. USMNT vs.Apple currently collects 15% to 30% of app developers’ revenue if the payments were transacted through its App Store.Ī statement from Apple released shortly after the ruling focused only on Judge Gonzalez Rogers’ conclusion that Apple is not an antitrust monopolist.Honduras to be played in frigid cold: Reactions to Minnesota weather conditions for soccer World Cup qualifier He added, “Given that Apple continues to take billions of dollars a year from Google Search, the incentive clearly is for this policy discrepancy to continue.” So what that means is that search ads could have access to far more third party data, for measurement and optimization purposes, than app-based ad platforms like ours.” “We believe those restrictions from Apple are designed in a way to carve out browsers from the tracking Apple requires for app. “Given that we know that e-commerce was one of the most impacted verticals from iOS restrictions, it makes sense that those restrictions are probably part of the explanation for that difference between what they were seeing and we were seeing,” Wehner said. The CFO said that Google “faces a different set of restrictions from Apple.” He suggested Apple is motivated to favor Google because of the billions Google has been estimated to pay Apple in order to remain the default search engine on iOS devices. Wehner called out e-commerce as one area where Meta saw a “meaningful slowdown in growth in Q4.” He added that it was “quite notable that Google called out seeing strength in that very same vertical” in its own Q4 results, which were published earlier in the week. Like Meta, the social media company Snap has complained that the updated iOS platform is impacting its revenues. The ATT feature requires app developers to get permission from a user in order to track their activity across other apps and websites when using an iPhone or iPad. So it’s a pretty significant headwind for our business.”Īpple’s iOS 14.5 update, released in April 2021, included an App Tracking Transparency (ATT) feature that has had a notable impact on digital advertising. “We believe the impact of iOS overall as a headwind on our business in 2022 is on the order of $10 billion. In Q4, the impact of Apple’s iOS changes were “in line with our expectations and similar to Q3 headwinds,” CFO David Wehner said on the call. On a conference call, the company detailed the extent to which Apple’s iOS changes are hurting the business, forecasting a $10 billion impact in 2022. Meta on Wednesday saw its shares fall in after-hours trading after reporting mixed Q4 results and a lower-than-expected outlook for the first quarter of 2022.
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