Apple vs. Epic ruling reveals 70% of App Retailer income comes from a small fraction of consumers taking part in video games


Apple‘s App Retailer income is made up virtually completely of customers taking part in video games, in keeping with a court docket ruling launched Friday that concluded Epic Games did not show Apple is a monopolist.

In response to the ruling, gaming apps account for about 70% of all App Retailer revenues. That 70% is generated by lower than 10% of all App Retailer customers, the court docket mentioned. Against this, greater than 80% of all accounts generate nearly no income, as 80% of all apps on the App Retailer are free, in keeping with the doc.

As of January, there have been 1 billion active iPhones and 1.65 billion Apple units in use across the globe.

Apple has for years taken a 30% lower of income from purchases in apps distributed by the App Retailer. Builders have alleged that Apple’s App Retailer platform is unfair to smaller corporations, and final yr Apple lowered the commission to 15% for apps with lower than $1 million in annual web gross sales on its platform.

On Friday, Choose Yvonne Gonzalez Rogers handed down the decision within the trial between Epic and Apple, and in the end issued an injunction that mentioned Apple cannot prohibit builders from offering hyperlinks or different communications directing customers away from Apple in-app buying.

The injunction goes into impact in December.

Apple would not disclose how a lot income its App Retailer makes per yr. Slightly, the corporate releases knowledge factors that embody the total amount Apple has paid to developers because the App Retailer launched in 2008. In response to a CNBC evaluation, Apple’s App Retailer had product sales of around $64 billion last year.

The corporate mentioned earlier this yr it has paid builders $200 billion since 2008, up $45 billion from January 2020.

—CNBC’s Kif Leswing contributed to this report.

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