Apple WWDC meeting concludes year of tension for businesses and developers
The annual software developer conference kicked off on Monday. It happened as something unusual for an iPhone maker. In short, the app developers weren’t happy with the terms of the App Store.
Tim Cook, CEO, kicked off a week-long global developer conference. It was generally an enthusiastic gathering for the company and its followers, and virtual events were shown on the company’s website, revealing that this year’s software changes were planned. This includes updates to iMessage, a text messaging system that includes a new way to share photos, and changes to FaceTime, a video calling software that aims to improve sound quality by reducing ambient noise, among other upgrades. It is.
“We look forward to sharing our latest technology with you and with the amazing community of millions of Apple developers around the world,” Cook said. “Your creativity and revolutionary applications continue to provide new and meaningful ways to enrich people’s lives. “
This year’s event will take place shortly after Apple’s legal battle with Fortnite maker Epic Games Inc. Increasingly difficult relationships Some developers have contracts with companies that manage access to over a billion iPhone users around the world.
In last month’s trial, where Epic accused Apple of an abusive monopoly, there was a year of rare disagreement among app developers. Includes public sparring When
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And Cook’s defense against Apple’s congressional actions.
Money is at the heart of developer dissatisfaction. Some people hate Apple’s recent new privacy rules that have disrupted the digital advertising industry. Some people hate Apple’s fees of up to 30% Digital income generated Via the App Store.
Apple has denied the claim that it is monopolistic and has defended its fees, saying it is just as fair as its competitors and about the value it has created. Apple says Epic wants to avoid paying a fair share to use the App Store
“The future appraisal of Apple developers is like an elephant in the WWDC room this year,” said Jean Manster, managing partner of Loop Ventures, a venture capital firm specializing in technology research. ..
On Monday, Apple will announce the latest operating systems, including iOS 15. This may include additional privacy features, notification changes, and new features in the messaging system that compete with Facebook’s WhatsApp messaging app.
After filing the Epic proceedings in August, Apple slashed fees for apps with revenue of $ 1 million or less from 30% to 15%.
Only a few apps generate over $ 1 million. Most of the App Store applications are free and at no cost. Free games make money mostly from in-app advertising, but Apple doesn’t collect savings on sales.
Cook is a strong advocate for this change as a way to protect user privacy and control how data is used. But in January, Zuckerberg said Apple had every incentive to “use its platform’s dominance to interfere with the behavior of our apps and others.”
Zuckerberg made another attempt against Apple on Monday, claiming that Facebook would not receive a portion of the revenue from live performances, subscriptions and other forms from creators until 2023. Less than 30% taken by Apple and other companies . ” Zuckerberg wrote On his Facebook page.
Amid the complaints, Apple has sought to highlight what Cook called the economic miracle unleashed by the App Store.
Apple recently released a report that estimated billing and sales driven by the App Store at $ 634 billion last year, up 24% from 2019. Last year, investors were rewarded with almost doubling the value of their shares.
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The App Store is the so-called Apple Service unitCook, which is part of the company’s operations, is betting on growth after iPhone sales have slowed in recent years. Nick Rodelli, director of investment research firm CFRA Legal Edge, said the app. We estimate that store fees and the money generated by making Google the default search engine for devices account for 40% of Apple’s pre-tax revenue.
Since the launch of the App Store in 2008, the number of available apps has grown from 500 to around 1.8 million.
Tensions make this year’s developer conference even more important. Apple spent more than $ 50 million on the event, according to court testimony from Apple executive Phil Schiller, who oversees the App Store. He said that in a typical year 6,000 developers would attend directly and tens of millions would watch online. This year, more than 200 sessions were held virtually and published online. He was.
During the Epic trial, U.S. District Court judge Yvonne Gonzalez Rogers, who plans to bring the case in a few months, presented the findings to Cook. Use Apple’s distribution services.
“How is it accepted? ” She asked.
In his testimony, Cook said he was not familiar with the document, but Apple refused. About 40% of applications submitted Go to the store every week. (Apple’s lawyer later pointed to an internal survey in 2019 that found 19% of developers to be dissatisfied.)
“There is definitely friction in the system,” Cook said, adding that strict standards allow users to have a good App Store experience.
The suggestion that 39% of developers are not happy with Apple is a surprising number for those who have followed Apple closely. Ben Bajarin, Senior Analyst at Creative Strategies Inc., said:
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