Epic Games has proven its power by legally challenging Apple, and it is true that the company has failed to achieve its main goals such as bringing Fortnite back to iOS. However, the outcome of the legal battle may lead to a complete change in the App Store.
The US court, through Judge Gonzalez Rogers, ruled on Apple to provide third-party payment methods within applications and games on the App Store. That is, developers will be able to add external payment methods besides the default payment method, which is done through Apple.
This decision will undoubtedly negatively affect Apple’s revenue from the Store. The company generates only $19 billion annually from 30% of sales of apps and games on the App Store.
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Apps and games for iOS and iPadOS are available exclusively through the Apple App Store. For its part, the court did not obligate Apple to provide external means to download applications and games, nor did it require Apple to reduce its percentage of sales.
Providing external payment methods through the App Store
The new law mainly affects the US market. Since it is the law that applies exclusively to this market at the moment. However, this does not make things better. As this market alone guarantees Apple $6.3 billion out of $19 billion. And that according to Bloomberg.
Paid apps and games will not be affected by this new law. As this type of purchase will be subject to Apple’s purchase system exclusively. But it’s the in-app purchases and free games that will change completely.
This is where developers will be able to provide third-party payment methods within apps. And if the big developers do it quickly, the impact will be disastrous for Apple.
This is because 95% of the total revenue of the App Store comes from 2% of developers. Any of the great apps.
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70% of the App Store revenue comes from games, while up to 98% of in-house payments come from gaming apps as well. This is because they are continuous and sequential payments and some are monthly.
Looking at the list of the most successful games on the App Store, we note that all of them – except for Minecraft – are free games with payments inside.
On the other hand, users’ personal decisions will have a significant impact. As 70% of Apple’s gaming revenue comes from only 10% of the players, as they are the most spending players, and in the event that they want to pay via external payment methods, Apple will be affected faster.
But what may ease the situation for Apple is that users may prefer to continue using the traditional payment method. Since it is the safest and most convenient, this point is highly dependent on how the third party payment systems are implemented.
Developers are on the move
A large number of developers have announced that they will start relying on external payment methods. It will start to be available on December 9, if nothing new is found. Epic Games has announced that it will appeal the rulings, and so will Apple.
has announce The developers of Hey email management app announced that they will immediately start using the new payment methods. And that’s after they fought a war with Apple over the past year over their huge share of payments.
Also Read: Will Apple Developers Benefit From App Store Changes
Contrary to what some expect. Most developers were not excited about the new system. This is because Apple’s payments system within the App Store provides many advantages for application developers, such as ease of receiving money and integration with tax systems in many countries, as well as easy retrieval of payments and integration with the Apple Pay service.
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In general, Apple will not lose its huge percentage of payments unless famous applications make their decision to support external payment methods on the one hand, and users rely on these methods on the other hand.
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