Post by account_disabled on Mar 16, 2024 0:00:55 GMT -4
Thanks to the United States Supreme Court, Apple now has a big problem with its attempt to reinvent itself as a company that sells services. The court has ruled that an antitrust case could be brought against the iPhone maker involving the commissions it charges for apps sold through its App Store, rejecting Apple's efforts to dismiss the lawsuit. The ruling increases the likelihood that Apple will lose the case in the long term or be forced to settle it on unfavorable terms. In any case, the Supreme Court's decision makes it more likely that Apple will have to reduce its App Store fees.
Unfortunately for Apple, the App Store is a key element of the services business that CEO Tim Cook is betting on for the company's future. As Apple's iPhone sales have begun to decline, it has been touting its services as the engine of its future growth . These services include its iCloud storage service, its deal with Google, which makes the tech SW Business Directory giant's search engine the default on the iPhone, and Apple Music. And in March, the company unveiled a slew of new offerings, including a new video streaming service and a gaming subscription service .
The European Union will investigate Apple after complaints of unfair competition from Spotify The court ruling endangers Apple's goose that lays its golden eggs Despite this growing catalog of service offerings, Apple's App Store remains the most important part of its services business, providing about a third of that business's revenue, according to Wall Street analysts . Additionally, Apple's App Store alone will account for 12% of the company's total gross profit this year , according to KeyBanc Capital Markets' March forecasts.