Apple’s Annual Developer Conference Caps a Tense Year

The Wall Street Journal2021-06-07

The iPhone maker will hold its WWDC virtually as it talks about changes to its software. AppleInc.’sAAPL1.90%annual conference for software developers begins Monday. It arrives with something unusual...

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Comments

Alex_2019
2021-06-08
Alex_2019
??
Xylta
2021-06-08
Xylta
[Surprised]
- Xylta:
  [Grin]
- JooL:
  [Miser]
- Xylta:
  [Cool]
- Xylta:
  [Happy]
Khloee
2021-06-07
Khloee
✨
NPC69
2021-06-07
NPC69
Good.
Nerz
2021-06-07
Nerz
Good?
名字真难起
2021-06-07
名字真难起
Good

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It arrives with something unusual for the iPhone maker: app developers unhappy about the terms of its App Store.\nThe weeklong Worldwide Developers Conference, which begins at 1 p.m. New York time with a keynote speech by Chief Executive Officer Tim Cook streamed on the company’s website, is normally a pep rally for the company and its acolytes. This year it comes on the heels of Apple’s courtroom fight with “Fortnite” maker Epic Games Inc., which spotlightedthe increasingly thorny relationssome developers have with a company that controls access to the billion-plus iPhone users world-wide.\nLast month’s trial, in which Epic accused Apple of improper monopoly behavior, capped a year of rare dissension among app developers. The periodhas included public sparringwithFacebookInc.CEOMark Zuckerbergand Mr. Cook’s defense before Congress of Apple’s behavior.\nAt the heart of developers’ gripes is money. Some dislike new privacy rules Apple recently enacted that disrupted the digital-ad industry. Others loathe the commission, as much as 30%, that Apple takes ondigital revenue generatedthrough the App Store.\nApple has denied allegations that it is a monopoly and defended its commission as in line with rivals’ and fair for the value it has created. 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Free games generate money primarily through in-app advertising, for which Apple doesn’t collect a sales cut.\nThe year of discontent began at last year’s WWDC, when Apple said it planned to introduce new privacy tools in its iOS 14 mobile operating system. Developers, including Facebook, complained that it would disrupt their ad businesses. In-app ads are often targeted at users based upon data about their activity online, which is collected by apps. Developers spent monthspuzzling out new strategiesto deal with Apple’s privacy-policy changes, which now require users to agree to being tracked.\nMr. Cook has forcefully defended the change as a way to protect users’ privacy and help them to control how their data is used. But, in January, Mr. Zuckerberg said Apple had every incentive to “use their dominant platform position to interfere with how our apps and other apps work.”\nAmid the complaints, Apple has tried to highlight what Mr. Cook has called an economic miracle unleashed by the App Store.\nApple recently released a report that estimated that billings and sales facilitated by its App Store rose 24% to $643 billion last year compared with 2019, fueled by quarantined users looking to avoid in-person interactions. Investors were rewarded last year with shares almost doubling in value.\nThe App Store is a big part of Apple’s so-calledservices unit, the part of the company’s business Mr. Cook is betting on to generate growth after previous years of slowing iPhone sales. Nick Rodelli, head of CFRA Legal Edge, an investment-research firm, estimates that app-store commissions, along with money generated from making Google the default search engine on its devices, account for 40% of Apple’s pretax income.\nSince launching the App Store in 2008, the number of available apps has grown to about 1.8 million from 500.\nThe tensions make this year’s developer conference all the more consequential. Apple spends more than $50 million putting on the event, according to court testimony by Phil Schiller, Apple’s executive overseeing the App Store. In a typical year, 6,000 developers would attend in person and tens of millions more would watch online, he said. This year’s 200-plus sessions are being held virtually and posted online.\nDuring the Epic trial, U.S. District Judge Yvonne Gonzalez Rogers —who is expected to rule on the case in the months ahead—confronted Mr. Cook with survey data that, she said, indicated that 39% of developers were either very dissatisfied or somewhat dissatisfied with Apple’s distribution services.\n“How is that acceptable?” she asked.\nIn testimony Mr. Cook said he was unfamiliar with the document but noted that Apple rejectsabout 40% of apps submittedto the store each week. (An Apple lawyer later pointed to a 2019 internal survey that said 19% of developers reported dissatisfaction.)\n“There is definitely some friction in the system,” Mr. Cook said, adding that the tough standards ensure users have good experiences in the App Store.\nThe suggestion that 39% of developers are unhappy with Apple is a striking figure for those who have closely followed Apple. “Apple is used to having 99% satisfaction with their customer base,” Ben Bajarin, principal analyst for Creative Strategies Inc., 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