Apple Embraces Change: iOS 17.4 Beta Introduces App Sideloading — But Only For EU Users
Portfolio Pulse from Ananya Gairola
Apple Inc. has begun beta testing iOS 17.4, which introduces app sideloading but only for EU users in response to the EU's Digital Markets Act. The feature allows alternative app stores to operate under strict conditions. Despite this, JP Morgan predicts the change will not significantly affect Apple's App Store revenue, as the EU represents only 6% of that revenue and a new fifty-cent fee could offset commission reductions.
January 26, 2024 | 11:56 am
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Apple's introduction of app sideloading in the EU is a compliance move with the DMA and is not expected to significantly impact App Store revenue, as the EU accounts for a small portion of it and a new fee may offset commission cuts.
The introduction of app sideloading for EU users is a significant regulatory compliance step for Apple, but according to JP Morgan, it is not expected to have a major impact on Apple's App Store revenue. The EU market represents a relatively small portion of Apple's overall App Store revenue, and the implementation of a new fifty-cent fee could help mitigate any potential loss from the reduced commission rate. Therefore, the short-term financial impact on Apple's stock is likely to be neutral.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 80