In the course of the Epic v. Apple case, much has come to light about how both companies generate profits. One of the biggest shocks came from the case’s closing ruling, which revealed that 70% of the App Store’s money came from games.
This lawsuit was brought by Epic Games in August 2020. The gist of the case is that Epic added a payment system in Fortnite Mobile allows players to avoid paying the extra 30% fees typically applied to App Store purchases, which belong to Apple. In response to the alternative, Apple removed Fortnite from its marketplace, which led Epic to take the matter to court.
The case is officially over, both Apple and Epic get something out of the final verdict. What’s most interesting is that eventually, information about Apple’s revenue model has been revealed to the public. The ruling revealed that game apps are the source of about 70% of the entire App Store revenue. Even more astounding is the fact that 70% are generated from less than 10% of all App Store consumers.
That staggering percentage is partly due to Apple taking a 30% cut in revenue from in-app purchases in the App Store. Even before this hearing, users as well as developers stated that the system was unfair to smaller developers.
Although the court case showed that Epic Games could not provide solid evidence of Apple’s monopoly, it won a small victory. The ruling states that Apple must allow developers to direct app users to payment options outside of those advertised by Apple.