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EU Apple

Apple Says EU Represents 7% of Global App Store Revenue (techcrunch.com) 67

Posted by BeauHD from the would-you-look-at-that dept.
Ivan Mehta reports via TechCrunch: Nearly a week after Apple announced big changes to the App Store because of the European Union's Digital Markets Act (DMA) rules, the company said that the market represents 7% of its global App Store revenues. The company's chief financial officer Luca Maestri said that the monetary impact of these changes will depend on choices made by developers to adopt different systems. "A lot will depend on the choices that will be made. Just to keep it in context, the changes applied to the EU market, which represents roughly 7% of our global app store revenue," he said in reply to an analyst's question.

Because of DMA, Apple has to allow alternative app stores and let developers use third-party payment processors. The company plans to charge a core tech fee if an app crosses a million annual downloads across different app stores. Amid these changes, Apple noted a record quarter for App Store revenues. The company's overall services revenue was $23.1 billion with an 11% jump year-on-year. Apple continued its narrative of defending the App Store and its commission ecosystem by saying that it provides the best privacy and security. CEO Tim Cook emphasized that the company will fall short of providing the best experience to users because of these changes.

"If you think about what we've done over the years is, we've really majored on privacy, security and usability. And we've tried our best to get as close to the past in terms of the things that are -- that people love about our ecosystem as we can, but we are going to fall short of providing the maximum amount that we could supply, because we need to comply with the regulation," he said.
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Apple Says EU Represents 7% of Global App Store Revenue More

Apple Says EU Represents 7% of Global App Store Revenue

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  • They are fudging the percent of overall business they get from the EU. When it comes to revenue for taxes or government oversight they never tell the truth. Ever.

    • Re: (Score:1)

      by zshXx ( 7123425 )
      Why would they lie? Why can't EU actually be 7% of app store revenue? They are not talking about total revenue by selling iDevices, just app store revenue.

      • Re:I assume Apple is lying (Score:4, Informative)

        by ShanghaiBill ( 739463 ) on Friday February 02, 2024 @09:32PM (#64209836)

        Why can't EU actually be 7% of app store revenue?

        It's possible.

        In America, 62% of smartphones are iPhones.

        In the EU, 74% of smartphones are Android.

        America is the biggest App Store revenue source. China and Japan are #2 and #3, followed by the UK, Taiwan, Canada, and Korea. Germany is the first EU country at #8. Australia is #9, and France is #10.

        App Store Revenue by Country [statista.com]

        The cited chart lists the revenue as percentages, but it is actually billions of dollars. Only the first ten are listed. The rest are paywalled.

        • Re: (Score:2)

          by sosume ( 680416 )

          It's true. Us Europeans hate Apple phones with a passion

          • No we don't. It's just that most people aren't willing to pay those prices for a phone. We've got better things to spend our money on.

            • I do. Being used with Android, when I have to use an iPhone, I find the experience... suboptimal, to say the least.

              • I do. Being used with Android, when I have to use an iPhone, I find the experience... suboptimal, to say the least.

                Exactly how I feel when I've had to use an Android phone.

                Now what?

                • Re: (Score:2)

                  by mjwx ( 966435 )

                  I do. Being used with Android, when I have to use an iPhone, I find the experience... suboptimal, to say the least.

                  Exactly how I feel when I've had to use an Android phone.

                  Now what?

                  Evidence that you can dumb yourself down but can't dumb yourself up.

                  Whenever I have to use an Apple product I pretty quickly run into things I'm used to doing on other devices (Android, Win, Linux) but cant do on an Apple device. I just make it a point not to use Apple devices.

                  • I do. Being used with Android, when I have to use an iPhone, I find the experience... suboptimal, to say the least.

                    Exactly how I feel when I've had to use an Android phone.

                    Now what?

                    Evidence that you can dumb yourself down but can't dumb yourself up.

                    Whenever I have to use an Apple product I pretty quickly run into things I'm used to doing on other devices (Android, Win, Linux) but cant do on an Apple device. I just make it a point not to use Apple devices.

                    Bullshit.

                    Give 3 Examples.

          • LOL, no, we just don't see the value proposition in having one.

          • Re: (Score:2)

            by danskal ( 878841 )

            You don't speak for us. I would never buy anything else.

            The trust and security plus durability of the phones and platform is better than the alternatives, IMO.

    • Re: (Score:1, Informative)

      by ACForever ( 6277156 )
      if apple says anything, its a safe bet its a lie

    • Re: I assume Apple is lying (Score:5, Insightful)

      by Dixie_Flatline ( 5077 ) <vincent.jan.gohNO@SPAMgmail.com> on Friday February 02, 2024 @09:46PM (#64209862) Homepage

      They probably are not. Apple tells a lot of half-truths and will dissemble with the best of them, but public statements about financial things are strictly regulated and even Apple tries to stay on the right side of those regulators and the shareholders.

      I suspect they made that statement to remind Europe that they are ONLY 7% of revenue and Apple would rather burn some bridges than relinquish control.

      Your cynicism assumes Apple lies, but my cynicism assumes Apple will use its money to exert power.

      • Re: (Score:2)

        by sosume ( 680416 )

        they should bugger off then

      • I suspect they made that statement to remind Europe that they are ONLY 7% of revenue and Apple would rather burn some bridges than relinquish control.

        Only 7% of revenue, converting to another unit it would be known as $6billion USD annually. Don't pretend Apple will happily give that up. Their shareholders certainly would have something to say to Tim Cook if they did.

        Your cynicism assumes Apple lies, but my cynicism assumes Apple will use its money to exert power.

        And your solution is to make less money thus give up power?

        No publicly listed company is pulling out of the EU. That is pointless rhetoric. The EU represents a growth opportunity for Apple given the exceedingly large size of the app store revenue compared to the percentages of iPhones sold.

        • Apple spent a LOT of money suing Samsung. Steve Jobs once said that he would spend all of Apple's money to exact revenge on Android. I feel like that scorched earth mentality still floats around in the company.

          But I think we only need look at the modern lawsuits to see that Apple will take any petty disagreement to the most insane possible end, even at some cost to them. They'd rather disable the oxygen sensor in the Watch than license from Masimo. They bought a whole modem division from Intel to try to get

      • I suspect they made that statement to remind Europe that they are ONLY 7% of revenue and Apple would rather burn some bridges than relinquish control.

        Your cynicism assumes Apple lies, but my cynicism assumes Apple will use its money to exert power.

        Which seems fine by me. Just shut down the app store.

      • What power? I don't expect them to start an "Apple party" and participate in the European Parliament elections.

        If a mobile phone company has a small share in one of the largest markets in the world, and they don't employ a significant number of people there, they don't have "power" to wield and will likely just shut up and take it, like they did with the unified USB.

        The only power they could try to use would be the power of the US government.

        • USB-C was probably coming anyway--we know that because there's a faster USB controller in the iPhone 15 Pro that can handle writing video data to a drive that's plugged in. That's not a last minute feature; the designs for those chips and phones are done years in advance. The only thing it did was accelerate the timeline for non-Pro iPhones. Or maybe they wanted to use that as a differentiator between Pro and non-Pro phones, but either way, it's not as big a deal as people make it out to be.

          The power that A

          • The problem with USB-C: It is of advantage both to Apple and to its customers if all devices have the same connector. If you accept this, then the overall best strategy is to resist USB-C for as long as possible, and then suddenly replace it everywhere simultaneously.
            • How is it a benefit for users that their peripherals no longer work? Of course that's something most Android users never had to worry about.

    • They are fudging the percent of overall business they get from the EU. When it comes to revenue for taxes or government oversight they never tell the truth. Ever.

      It’s kinda hard to fudge the percentages when you’re disclosing your global revenues broken down by region as part of your mandatory quarterly financial filings, and have done so for years and years and years, since well before the DMA was ever under consideration. In fact, contrary to what you’re suggesting, they actually reported record revenues in Europe this last quarter, and yet it’s still only 7%.

      https://sixcolors.com/post/202... [sixcolors.com]

      Scroll down to the regional breakdown and you can

      • Partially because the EU has significant tax and other regulatory restrictions that have many app makers abandon the market.

        I know many people that have an iTunes account an American address, it avoids the 25% sales tax, you get more content and the EU canâ(TM)t control it, just pay with a credit card or gift card. Even on Android the offerings are rather poor.

        • Thatâ(TM)s called tax evasion, isnâ(TM)t it? But seriously, as an app developer, the App Store makes it very very easy to sell everywhere in the world. Apple handles all the import, export, taxes and regulations for you, so all you get from selling to 140 additional countries is some money in your account every month for close to zero effort. If you are in breach of some regulations (say you make a game where your characters drink lots of alcohol, and Saudi Arabia doesnâ(TM)t like it) worst c

        • Re: (Score:2)

          by Teun ( 17872 )
          Yes some Europeans manage to use a US account.
          But 25% VAT only exists in Denmark, the other EU countries have varying rates that are (much) lower.

          • Re: (Score:1)

            by guruevi ( 827432 )

            I wouldn't call Germany's 24% or the legally mandated minimum VAT rate "much" lower at 15%, neither is the average 21.6% (although this figure is pulled down by Eastern Europe).

    • I'm assuming that something like 80% of global revenue is declared in various tax havens around the world so this figure doesn't sound at all surprising. We seriously need to reign in this deceit. It's not doing anyone but a tiny minority any good.
      • Why would apple do that? Itâ(TM)s not their money, itâ(TM)s the developers money, and apple wonâ(TM)t break the law to put more money in the developers pocket. Taxes on apples 30% or 15% will be taxed where apple gets paid _by the developer_. So any app created by a us developer, Apple pays tax on the profit in the USA. Donâ(TM)t make up shit, thatâ(TM)s what we have AIs for.
        • You're obviously not well-informed about tax avoidance by the way you generalise across tax jurisdictions & completely ignore the deliberately complicated tax laws in many countries. Oh & the bit where you say Apple gets paid by the developer. You really should've thought your comment through.
        • apple won't break the law to help out developers but they sure will break the law to help out themselves

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