App Store in the EU: why only 7% of Apple's global revenue?
At a press conference with analysts and investors on Apple's financial results for the first quarter of 2024, Tim Cook and Luca Maestri discussed changes to the App Store for the European Union.
Changes to the European Union App Store
EU App Store revenue accounts for 7% of Apple's global revenue
Luca Maestri provided statistics on the importance of Apple's business in the European Union, indicating that App Store revenue in the EU accounts for about 7% of Apple's total global revenue. Source.
Changes to the App Store and payment options
Changes to the EU App Store were announced last week and will come into effect in March . These include alternative payment methods and the ability to use alternative app stores or marketplaces. Also, NFC will be available for new banking and wallet applications.
We have always placed great importance on privacy, security and ease of use. Our goal is to preserve what users adore about our ecosystem and get as close to them as possible. However, we must comply with regulatory requirements and therefore may not be able to provide all the information required.
Predicting the choices that developers and users will make is a very difficult task. We prefer to wait and see how the changes will affect our ecosystem, so we won't be able to evaluate the changes until March.
Source of Apple's App Store revenue in the EU
Luca Maestri stressed that the changes will be implemented in March. However, much will depend on the choices of users and developers.
It is important to note that these changes apply only to the European EU market and represent approximately 7% of Apple's total App Store revenue.
Tim Cook also announced the company's plans to introduce generative AI capabilities into its products "this year."
Answers to questions
What changes have been announced to the App Store in the European Union?
Last week, Apple announced a number of changes to the App Store in the European Union. These changes include alternative billing capabilities and the opening of NFC to banking and wallet applications.
What is the importance of Apple's App Store business in the European Union?
The importance of Apple's App Store business in the European Union accounts for about 7% of the company's global App Store revenue.
What new generative AI features will Apple introduce this year?
During a call with analysts and investors, Apple CEO Tim Cook announced generative artificial intelligence features would be coming to the company's products "this year." Additional information about these features was not provided.
- Tim Cook is the CEO of Apple.
- Luca Maestri is Apple's Chief Financial Officer.
- The App Store is a digital application store owned and operated by Apple.
- The European Union (EU) is a political and economic union of 27 European countries.
Today on Apple's Q1 2024 earnings call with analysts and investors, CEO Tim Cook and CFO Luca Maestri commented recently Announced changes to the App Store in the European Union.
In particular, Maestri released statistics on the importance of Apple's App Store business in the European Union, noting that it accounts for about 7% of Apple's global App Store revenue, reports 9to5mac.
When asked about changes to the EU App Store and how they could impact Apple's financials, Cook said:
Last week we announced a number of changes in Europe that will take effect in March, which is the last month of the first calendar quarter, the second financial quarter.
Some of the changes we've announced include alternative billing options, alternative app stores or marketplaces if you will. We're also opening up NFC to new possibilities for banking and wallet applications.
If you think about what we've done over the years, we've focused on privacy, security, and usability. We've tried to stay as close to the past in terms of what people love about our ecosystem as possible.
But we will not be able to provide the maximum amount of data that we could because we must comply with regulatory requirements.
In terms of predicting the choices that developers and users will make, it is very difficult to do so with accuracy. So I'll see what happens in March.
CFO Luca Maestri added:
As Tim said, these are the changes we will be rolling out in March. Much will depend on the choice that is made.
For context, the changes apply to the EU market, which accounts for approximately 7% of our global App Store revenue.
During that same call, Cook announced generative AI features would be coming to the company's products "this year."