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Apple webkit app infrequentlynoted4/5/2023 ![]() The former director of the app review team for the App Store observed that Apple is “not subject to any meaningful competitive constraint from alternative distribution channels.” In response to these concerns, Apple has not produced any evidence that the App Store is not the sole means of distributing apps on iOS devices and that it does not exert monopoly power over app distribution.Īpple says it does not create-nor is it aware of third-party data-that tracks market share in the app distribution market. Apple fully controls how software can be installed on iOS devices and CEO Tim Cook has explained that the company has no plan to permit an alternative app store. Developers have explained that Apple actively undermines the open web’s progress on iOS “to push developers toward building native apps on iOS rather than using web technologies.” As a result, Apple’s position as the sole app store on iOS devices is unassailable. As discussed earlier in this Report, consumers have a strong preference for native apps to web apps, and Apple has acknowledged key differences between them. It does not permit alternative app stores to be installed on iOS devices, nor does it permit apps to be sideloaded. ![]() ![]() Apple’s App Store is the only method to distribute software applications on iOS devices. ![]() This indirect evidence corroborates the argument that these companies are facing few competitive threats. By contrast, Facebook, Google, Amazon, Apple, and even Microsoft were able to ride these waves without significant impact on market share or profit margins. In the past, dominant businesses found it difficult to navigate innovation or disruption waves. The key players in this industry remained the same over the last two technology waves, staying dominant through the shift to mobile and the rise of AI. Consequently, it has a dominant position in the mobile app store market and monopoly power over distribution of software applications on iOS devices. As a result, Apple’s control over iOS provides it with gatekeeper power over software distribution on iOS devices. It is unlikely that there will be successful market entry to contest the dominance of iOS and Android. Apple’s market power is durable due to high switching costs, ecosystem lock-in, and brand loyalty. run on iOS or iPadOS, an iOS derivation for tablets introduced in 2019. More than half of mobile devices in the U.S. Apple installs iOS on all Apple mobile devices and does not license iOS to other mobile device manufacturers. Apple’s iOS mobile operating system is one of two dominant mobile operating systems, along with Google’s Android, in the U.S. Apple has significant and durable market power in the market for mobile operating systems and mobile app stores, both of which are highly concentrated. According to Apple, the App Store ecosystem, including direct sales of apps, sales of goods and services inside of apps, and in-app advertising facilitated more than $138 billion in economic activity in the U.S. Apple credits the App Store with creating 1.5 million jobs in the United States, and more than $120 billion in worldwide revenue for app developers. Launched in 2008, Apple highlights that the App Store allows app developers to reach consumers in 155 countries, and that more than 27 million app developers have published millions of apps in the App Store. Apple also owns and operates the App Store for iOS devices. In 2018, Apple sold its 2 billionth iOS device, and is projected to sell its 2 billionth iPhone by 2021. Globally, Apple accounts for less than 20% of the smartphone market, and roughly 25% of smartphones and tablets run on iOS worldwide. Apple’s iOS is also one of two dominant mobile operating systems-the other operating system, Android, is discussed elsewhere in this Report. AAPL “designs, manufacturers, and markets smartphones, personal computers, tablets, wearables, and accessories, and sells a variety of related services.” Apple’s hardware products include the iPhone, iPad, Mac, Apple TV, and AirPods its Services business segment includes the App Store, iCloud, AppleCare, Apple Arcade, Apple Music, Apple TV+, and other services and software applications.Īpple is the leading smartphone vendor in the U.S., accounting for approximately 45% of the domestic market, with more than 100 million iPhone users worldwide. Apple was an early pioneer in designing and marketing mass-produced personal computers. An Apple 3.0 exclusive: 45 Pages from the 450-page majority staff report (sans footnotes).Īpple was incorporated in 1977, and is headquartered in Cupertino, California.
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