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Battle Royale: Fortnite takes on Apple

14 August 2020
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Fortnite has been kicked from mobile app stores over the ‘App Store tax’, the 30% cut that Google and Apple charge for in-app purchases.

Apple needs Fortnite to keep the iPhone attractive, but it also needs its revenue cut, as services have become a key part of its growth story to investors.

Apple can no longer set its ecosystem rules without regard for partners, as apps like Fortnite, Amazon and WeChat are so central to the utility of a smartphone.

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Apple is constrained here by the need to deliver the best product possible to its users, and by the possibility of regulatory intervention.

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  • Apple WWDC 2020: Putting the squeeze on developers

    2 July 2020

    Apple’s developer conference coincided with a period of unprecedented tension with its developer community, parts of which are chafing under Apple’s rules for the iPhone App Store.

    These rules let Apple extract a large portion of the value of the App Store. This revenue is more important than ever to Apple’s growth story, so it has been applying its rules more strictly.

    Apple is constrained here by the need to deliver the best product possible to its users, and by the possibility of regulatory intervention.

    Access report

  • Cut-price iPhones: Apple's innovative approach

    13 September 2019

    Apple’s iPhone launch event was relatively light on iPhone, which shared the stage with games, TV, Watch, iPad and retail announcements

    This reflects Apple’s developing priorities: as iPhone sales soften, it needs to find new ways to extract value from the wealthy user base it has spent a decade nurturing

    Apple has embraced this new strategy, offering a range of cheaper points of entry into its ecosystem, making the lost profits back on accessories or content subscriptions

    Access report