Apple's EU App Store Sales Remain Steady Despite Regulatory Changes: Report

Recent analysis by Evercore ISI indicates that Apple Inc. AAPL has experienced negligible revenue impact in the EU App Store after complying with the European Union’s Digital Markets Act (DMA).

What Happened: Despite the regulatory changes that took effect in March, the EU App Store, which accounts for less than 1% of Apple’s services sales, has not shown any substantial change in revenue levels, Investing.com reported on Wednesday. The EU App Store revenue saw a 28% increase in March and a 22% rise in April.

Analysts attribute the minimal impact to Apple’s new “Core Technology Fee” for apps downloaded outside the App Store, which they suggest might exceed the conventional 30% cut Apple takes on App Store sales.

Evercore maintains an Outperform rating and a $220 target on Apple.

Analysts caution that if the EU successfully contests the Core Technology Fee in court, the situation could change. However, even if such a challenge affects Apple’s revenue, the company emphasizes that EU App Store revenue is relatively insignificant, making up only about 8% of App Store revenue and less than 1% of Apple’s total revenue.

See Also: Elon Musk Reacts To Nvidia’s Soaring Market Cap, ‘Big Short’ Michael Burry’s AI Picks And Nvidia’s Strong

Why It Matters: Apple began implementing changes in February to support alternative app stores in the EU. However, in May, Apple faced a $1.95 billion fine from the EU over App Store practices.

Meanwhile, Apple’s defense of App Store fees faced criticism as a U.S. District Judge called out executives and asked for justification of the rates.

Price Action: On Wednesday, Apple’s stock was trading 0.84% higher at $191.59 at the time of writing, according to Benzinga Pro. The company reported Q2 2024 earnings per share (EPS) of $1.53, slightly above the estimated $1.50. The revenue for the quarter was $90.753 billion, surpassing the estimated $90.01 billion.

Read Next: Elon Musk, Who Acquired Twitter For $44B, Says Social Media Is Bad For Kids: ‘They’re Being Programmed By A Dopamine-Maximizing AI’

Photo by Tada Images on Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari