Apple: record spending on the App Store during the holidays despite controversy

by bold-lichterman

In the midst of controversy over its way of managing the App Store, Apple on Wednesday announced record user spending on its online application store during the holiday season. Customers with an iPhone or iPad, for example, shelled out $ 1.8 billion through the App Store’s payment system for goods and services during the week between Christmas and New Years, the Silicon Valley giant noted in a press release.

In total, since the launch of the App Store in 2008, the download platform has generated more than 200 billion in revenue for application publishers, adds the group, which welcomes the enthusiasm of consumers for its services, favored by the Covid-19 pandemic. “We believe the opportunities for developers and creatives are endless”, commented Eddy Cue, vice president of software and Internet services at Apple.

Crusade against the “Apple tax”

But this announcement comes as companies like Spotify or Epic Games, publisher of the popular Fortnite video game, are crusading against the “Apple tax”, which they consider too high and unfair. The iPhone maker takes a 30% commission on most user spending through apps. Standard fees in the industry, and necessary for the proper functioning of the App Store, according to Apple. More recently, Facebook has attacked its Californian neighbor head-on on the measures it has taken to impose more transparency in the collection of data by developers.

The latest update of Apple’s iOS mobile operating system requires mobile applications to ask users for their permission to track them. The social network believes that this decision will severely affect small businesses, which will no longer be able to sell ultra-targeted advertising spaces so easily (much more lucrative than non-personalized ones).

Facebook, whose revenue comes mainly from digital advertising, assures us that Apple is much more interested in financial profits than in the protection of privacy. ” This will force companies to switch to in-app purchase and subscription models, which means Apple will benefit ”, Dan Levy, Facebook vice president of advertising and business products, wrote in a statement in mid-December.