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iPhone sales are falling, and Apple's app fees might be next

3 years 3 months 3 weeks ago Wednesday, March 06 2019 Mar 6, 2019 March 06, 2019 9:44 AM March 06, 2019 in News
Source: Associated Press

SAN FRANCISCO (AP) - As iPhone sales slip, Apple has been positioning its booming digital-services business as its new profit engine. But there could be a snag in that plan.

A brewing backlash against the rich commissions Apple earns from all purchases and subscriptions made via iPhone apps could undercut the app store, which generates about a third of the company's services revenue. Late last year, Netflix rebelled against Apple's fees, which can range from 15 percent to 30 percent.

Analysts fear other companies may follow. Attorneys representing consumers in a pending Supreme Court case also charge that Apple is an unfair monopolist in the market for iPhone apps. An adverse decision could open a legal door that might eventually force Apple to cut its generous commissions.

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