Apple says EU represents 7% of global App Store revenue

About a week after Apple announced major changes to the App Store due to the European Union’s Digital Markets Act (DMA) regulations, the company said the market represents 7% of its global App Store revenue.

Luca Maestri, the company’s chief financial officer, said the monetary impact of these changes will depend on the choices developers make to adopt different systems.

“A lot will depend on the options chosen. “Just to put it in context, the changes apply to the EU market, which represents approximately 7% of our global App Store revenue,” he said in response to an analyst question.

Because of the DMA, Apple has to allow alternative app stores and let developers use third-party payment processors. The company plans to charge a core technology fee if an app crosses one million annual downloads across various app stores.

Amid these changes, Apple reported a record quarter for App Store revenue. The company’s total services revenue was $23.1 billion, up 11% year-over-year.

Apple continued its story of defending the App Store and its commission ecosystem by saying that it offers the best privacy and security. CEO Tim Cook stressed that these changes would cause the company to fail to provide the best experience to users.

“If you think about what we’ve done over the last few years, we’ve really focused on privacy, security and usability. And we’ve tried our best to get as close to the past in terms of the things that — people like about our ecosystem, but we’ll fall short of delivering the maximum amount, because we need to comply with regulation. , “They said.

In the EU, Apple also had to open up the browser ecosystem by allowing other browsers to use their own engines instead of WebKit. When users start their iPhone after updating to iOS 17.4, the company will show them a splash screen to choose a default browser.