The analyst questions whether the revenue division 70/30 of Apple in the App Store could affect the growth of the Services



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While Apple has been promoting its growing Services segment as the future of growth, an badyst is concerned. As reported by CNBCBernstein badyst Toni Sacconaghi addressed concerns that the growing revolt against the revenue of Apple's app store 70/30 will affect its long-term growth.

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In a note to investors, Sacconaghi writes that investors are worried about the developers who rebel against this "Apple Tax", which may affect the growth of the Apple Services segment:

"While the service segment grew 18 percent in the December quarter, we have now started to have questions from investors worrying about whether the app store will be the next step," Sacconaghi wrote. "Certainly, the headlines of recent months have not been encouraging." Netflix, Spotify and Fortnite have stopped / threatened to stop paying the so-called "Apple Tax". from 15 to 30 percent on the income of the App Store ".

On the other hand, Sacconaghi recognizes that the 30 percent cut that Apple makes through the App Store is what has led the App Store to represent 40 percent of the growth of all services.

This concern of the investors comes after the decision of Netflix last month to eliminate the invoicing functionality integrated in the application of its iOS application for new clients. Other developers, such as Epic Games, have also expressed concern about the revenue sharing model.

Ultimately, however, Sacconaghi recognizes these concerns, but believes that the iPhone is still the most important thing for Apple investors. Sacconaghi says he is not at all concerned about the "disintermediation" of the App Store, but does not address the possibility that other reputable companies follow the steps of Netflix.

"We are not worried, at all, about the possible disintermediation of the App Store," he wrote. Instead, the badyst is concerned about the iPhone and believes that estimates for the sale of the smartphone may have to be reduced further.

What you think? Is it time for Apple to reconsider its 70-30 division in the App Store? Let us know in the comments.


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