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Apple has third of gaming market's transactions in total, 7% of 'Fortnite' revenue

Credit: Andrew O'Hara, AppleInsider

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The Epic v. Apple trial has revealed a slew of data points about the App Store that would otherwise be hard to come by, including margins and its share of the gaming market, JP Morgan says.

In a note to investors seen by AppleInsider, JP Morgan analyst Samik Chatterjee highlights some of the App Store details and data used as evidence in the opening arguments of the trial.

For example, Apple estimates that it accounts for roughly 23% to 38% of the total gaming transaction market — with the remainder divvied up between other companies. Chatterjee says this data supports the view that Apple doesn't have monopoly power in the segment.

Additionally, during its opening argument, Apple highlighted the fact that its 30% commission on app and in-app purchases is an industry standard. Other companies that charge the same amount include Sony, Nintendo, Google, and Samsung.

One of Apple's main augments is how the App Store has benefitted developers. Since 2009, App Store developer revenue has grown 10 times. In December 2009, App Store annualized revenue was $1.2 billion. In 2019, that number had grown to $12 billion.

When it comes to "Fortnite" specifically, Apple's platforms accounted for only a minority share of the revenue. PlayStation and Xbox combined made up 75% of "Fortnite" revenue. Between March 2018 and July 2020, only about 7% of revenue in the battle royale game came from iOS.

Similarly, iPhone and iPad devices don't appear to be the only choice for "Fortnite" players. According to data provided by Apple, 95% of iOS users regularly use or could have used devices other than their Apple smartphones or tablets.

Apple also backed up some of its arguments relating to privacy and security. For example, it says iOS devices boasted the lowest percentage of malware infections. The mobile operating system accounts for about 2% of total malware infections, versus 39% for Windows, 27% for Android, and 33% for others.



23 Comments

genovelle 1481 comments · 16 Years

The Apple v. Epic Games trial has revealed a slew of data points about the App Store that would otherwise be hard to come by, including margins and its share of the gaming market, JP Morgan says.

Credit: Andrew O'Hara, AppleInsider
Credit: Andrew O'Hara, AppleInsider


In a note to investors seen by AppleInsider, JP Morgan analyst Samik Chatterjee highlights some of the App Store details and data used as evidence in the opening arguments of the trial.

For example, Apple estimates that it accounts for roughly 23% to 38% of the total gaming transaction market -- with the remainder divvied up between other companies. Chatterjee says this data supports the view that Apple doesn't have monopoly power in the segment.

Additionally, during its opening argument, Apple highlighted the fact that its 30% commission on app and in-app purchases is an industry standard. Other companies that charge the same amount include Sony, Nintendo, Google, and Samsung.

One of Apple's main augments is how the App Store has benefitted developers. Since 2009, App Store developer revenue has grown 10 times. In December 2009, App Store annualized revenue was $1.2 billion. In 2019, that number had grown to $12 billion.

When it comes to "Fortnite" specifically, Apple's platforms accounted for only a minority share of the revenue. PlayStation and Xbox combined made up 75% of "Fortnite" revenue. Between March 2018 and July 2020, only about 7% of revenue in the battle royale game came from iOS.

Similarly, iPhone and iPad devices don't appear to be the only choice for "Fortnite" players. According to data provided by Apple, 95% of iOS users regularly use or could have used devices other than their Apple smartphones or tablets.

Apple also backed up some of its arguments relating to privacy and security. For example, it says iOS devices boasted the lowest percentage of malware infections. The mobile operating system accounts for about 2% of total malware infections, versus 39% for Windows, 27% for Android, and 33% for others.

So, if their flagship game is a minor player on iOS why should they have any say in how our preferred Platform works, while they pay the same or higher commissions Sony and Microsoft? I wish there were a signature campaign calling for the boycott of Epic for threatening to destroy the function of our $1000 phones for their selfish greed and the will of China. 

Trey_Lance 98 comments · 3 Years

Again, I been pointing out Epic is largely owned by Chinas Tencent Media, which for people who spent time in Hong Kong And China like me, know that company is essentially controlled by Chinese communists.

Nobody  find it odd that now Epic, largely Chinese owned is trying to hit Americas largest company Apple?

crowley 10431 comments · 15 Years

Again, I been pointing out Epic is largely owned by Chinas Tencent Media

Really?  I hadn't noticed.  Maybe you should point it out a few dozen more times.

Trey_Lance 98 comments · 3 Years

crowley said:
Again, I been pointing out Epic is largely owned by Chinas Tencent Media
Really?  I hadn't noticed.  Maybe you should point it out a few dozen more times.

Sorry but that is the whole key to this case. All this security or Gaming market stuff is just smoke screen.

look at what China is trying to do to Tesla using “Weibo”(Also a company controlled by China) by planting people who is claiming Tesla
brakes don’t work and trying to rile up the people.

The Chinese communists are very calculating people, they smile at you but then stab you, they are essentially using our courts now trying to hurt American company for the benefit of Huawei and others

sflocal 6138 comments · 16 Years

crowley said:
Again, I been pointing out Epic is largely owned by Chinas Tencent Media
Really?  I hadn't noticed.  Maybe you should point it out a few dozen more times.
Sorry but that is the whole key to this case. All this security or Gaming market stuff is just smoke screen.

look at what China is trying to do to Tesla using “Weibo”(Also a company controlled by China) by planting people who is claiming Tesla
brakes don’t work and trying to rile up the people.

The Chinese communists are very calculating people, they smile at you but then stab you, they are essentially using our courts now trying to hurt American company for the benefit of Huawei and others

Sweeney remains the majority shareholder.  Tencent owns 48.4% of Epic.


As much as I can't stand Sweeney, I doubt he is bending-over and grabbing his ankles for China.  This is Sweeney having a personal beef with Apple and much less - if any - about China trying to ruffle Apple's feathers.