Apple to see little change to its bottom line from EU overhaul

Apple yesterday announced major changes it is making to iOS, Safari and the App Store, as iPhone users will be able to install apps from third-party app storefronts, select a third-party contactless payment platform default to replace Apple Pay, use an alternative. payment platform to pay for in-app transactions in the App Store, and more. Before you get too excited, these changes are only happening in the 27 member countries that make up the European Union (EU).

Some analysts fear that by reducing the so-called “Apple tax” in the EU for developers using Apple's in-app payments platform from 15 to 30 percent to 10 to 17 percent, Apple's Services unit will see a speed bump in its activity. Rate of growth. Additionally, Apple receives no cut from in-app transactions processed by a third-party platform, which developers are allowed to do in the EU when changes begin in March with the release of iOS 17.4. The developer beta was just released this week.

But there is at least one major investment firm that sees little change in Apple's finances after these massive changes take effect in the EU. AppleInsider » read the latest investment note on Apple sent to JP Morgan clients. The latter estimates that a 50 cent tax that Apple imposes in the EU on all apps downloaded after reaching one million installations will offset the drop in Apple's tax in the EU. Additionally, the investment firm points out that the EU is only responsible for 6% of App Store revenue.