Apple’s holiday quarter financial results offer good news for investors. iPhone is doing great! And CEO Tim Cook talked about AI. But there’s rotten news coming out of China.
We pored over the results, and listened to the call Apple executives held Thursday with Wall Street analysts, so you don’t have to. Here’s the information you ought to know.
Apple returned to revenue growth during its most recent critical holiday quarter. The total it took in during the December period went up 2% — that’s after the company experienced declining revenue in each of the four previous quarters.
“Today Apple is reporting revenue growth for the December quarter fueled by iPhone sales, and an all-time revenue record in Services,” said Apple CEO Tim Cook in a press release Thursday announcing Apple’s fiscal first-quarter results.
A noted Apple critic used the terms “malicious compliance” and “hot garbage” to describe the elaborate rules the company laid down Thursday for allowing European iPhone users to sideload applications.
Those blasts came from Tim Sweeney, CEO of Epic Games, a company that’s locked in a legal battle with Apple over App Store rules. But other devs also cast aspersions on Apple’s framework for setting up App Store rivals. They pointed out that the new system comes with a huge financial obligation, and that it will make free apps almost impossible.
To be clear, though, not all developers are unhappy. Apple’s new rules also drew some compliments.
Apple is bringing sideloading and alternate app stores to the iPhone — but with significant restrictions.
Apple gave EU developers guidelines and access to the tools needed for sideloading — installing applications that don’t go through the App Store. But the new rules require these apps to be approved by Apple before they can be installed by iPhone users. And they need to be in alternative marketplaces, not directly available for download.
In other words, sideloading won’t be the free-for-all some people had hoped.
This is part of sweeping changes to iOS, Safari and the App Store required by the European Union’s Digital Markets Act. And Apple’s announcement of these changes in Thursday is loaded with warning about how sideloading brings risks for users.
To comply with EU mandates, Apple will open the iPhone’s NFC payment chip to third parties, the company said Thursday. Starting in March, users in the European Economic Area will be able to utilize tap to pay on iPhone services other than Apple Pay when making purchases.
The new payment option, part of sweeping changes forced on the iPhone and iOS by the EU’s Digital Markets Act, could cut into Apple’s services revenue. And the company warns that it could put users at risk. Read more about the expansion of iPhone’s Tap to Pay feature across Europe.
Although the European Union requires Apple to allow sideloading of iPhone applications, Cupertino reportedly hopes to review apps before they become available for installation from outside the App Store.
Apple also expects developers to voluntarily send a percentage of all revenue generated through sideloaded iOS applications.
The days of the iPhone’s NFC capabilities being limited to just Apple Pay are coming to an end. Apple is open to allowing rivals to use the iPhone wireless tap-to-pay system. But only in the European Union.
The change is the result of antitrust charges brought by the EU.
Following the Supreme Court’s refusal to hear appeals in the Epic Games v. Apple lawsuit, Apple is making significant changes to its U.S. App Store guidelines.
Developers can now link to an external in-app payment method. However, they still will need to pay Apple a commission of 12% to 27% on these transactions. And the mechanism for allowing such external payments might prove so onerous that developers take a pass.
Epic Games CEO Tim Sweeney called it a “bad-faith ‘compliance’ plan” Tuesday — and vowed that his company will contest Apple’s plan in District Court.
Margrethe Vestager, the European Union’s commissioner for competition, met with Apple CEO Tim Cook on Thursday to discuss the upcoming EU requirement that iPhone users be able to install applications from outside the App Store, aka sideloading.
Vestager also says the two discussed the EU’s investigation into whether Apple Music is anticompetitive.
If you’ve still got an entire corner of your countertop devoted to charging your Apple devices, here’s a PSA: You can finally do away with that spaghetti bowl of cords. Wireless charging has always been more convenient, but thanks to the power and design of the ZeroLemon MagJuice+ Magnetic Wireless Battery Pack, it’s portable and affordable, too.