Apple reveals App Store revenue share in China as Huawei rivalry grows

The US giant says most of its App Store revenues in China are paid to developers and companies

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People line up outside an Apple store in Beijing as the iPhone 16 goes on sale in September. Photo: Reuters

Published: 8:30pm, 20 Nov 2024Updated: 8:44pm, 20 Nov 2024

Apple has made a rare disclosure of the revenue generated from its App Store in China, as the US tech giant grapples with a controversy surrounding the so-called Apple Tax – commission fees that the company charges developers for using its app store and in-app payment system.

Apple China on Monday published an article on its official website that cited a report by a Shanghai University of Finance and Economics researcher, saying that the local App Store paid over 95 per cent of the 3.76 trillion yuan (US$519 billion) in revenue it generated last year to Chinese developers and various companies.

“We’re proud that the investments we make in the App Store have helped it become a powerful growth engine for local businesses of all sizes,” Apple chief executive Tim Cook wrote on Chinese microblogging platform Weibo. He said that the company is committed to the success of entrepreneurs across China.

It is unclear whether the study was sponsored by Apple. The company and the report’s author Ju Heng did not immediately respond to a request for comment on Wednesday.

A Huawei flagship store in Shanghai, China. Photo: Costfoto/NurPhoto via Getty Images

Apple is under pressure to appease app developers in China, as local rival Huawei Technologies is aggressively pushing its iOS and Android alternative, HarmonyOS. In the first quarter, HarmonyOS overtook Apple’s iOS to become the second-biggest mobile operating system in mainland China, according to Counterpoint Research.