In terms of gaming platforms, the products of Apple rival those from with Sony Playstation, Microsoft Xbox, and Nintendo, according to a regulatory filing released on Friday.
Apple has stated earlier that it competed for software developers’ attention and rivalled with Google’s Android and Microsoft Windows.
However, recently it has been revealed that Gaming applications account for over 70 per cent of total App Store revenue of the company.
At a high-profile antitrust dispute with Epic Games earlier this year, the rivals of Apple were a hot subject of discussion, in which Apple contended that it didn’t have a monopoly because its App Store competed with other gaming platforms that featured Epic’s Fortnite, which Apple removed from its store.
Gaming consoles were not included as rivals in the company’s SEC filings at the time.
In the end, the court determined that Apple did not have a monopoly in the market for “mobile gaming transactions,” but he did require the company to adjust its business practises and enable developers to link to payment systems other than Apple’s.
The verdict has been appealed by Epic Games and Apple.
Apple’s annual filing includes an update on how much money it generates from gaming on its phones and tablets.
According to the court verdict in the Epic Games trial, gaming applications earn almost 70% of all App Store income, which is generated by less than 10% of App Store users.
In terms of product decisions, Apple is increasingly catering to gamers. Apple announced new iPhone 13 Pro models in September with screens that can raise their refresh rate, a feature that is popular among gamers.
According to a CNBC research, Apple’s App Store will have total sales of nearly $64 billion in 2020. Apple generates more money from games than Microsoft, Nintendo, Activision Blizzard, and Sony, according to the company.
In its annual report, Apple cautioned investors that it may be compelled to make more changes to its App Store, which may limit the amount of apps downloaded and the commission Apple receives.
Apple “is also subject to litigation and investigations relating to the App Store, which have resulted in changes to the Company’s business practices, and may in the future result in further changes,” the company said in the filing with the SEC.
On the App Store, Apple takes between 15 per cent and 30 per cent of paid software downloads, in-app purchases, and subscriptions offered by third-party apps.
Apple’s App Store is part of the company’s services division, which generated $68.43 billion in revenue in fiscal 2021, up 27% from the previous year. Apple does not separate income from service components like as subscriptions, extended warranties, and advertising.
According to Apple’s report, the company’s services division grew last year, owing to growth in advertising, the App Store, and the cloud. However, Apple has cautioned that heightened scrutiny of other technology companies might harm its advertising business.
“For example, the Company earns revenue from licensing arrangements with other companies to offer their search services on the Company’s platforms and apps, and certain of these arrangements are currently subject to government investigations and legal proceedings,” Apple said in the filing.
(Adapted from CNBC.com)