Why opening up the iPhone in Europe won’t have a significant negative impact on Apple.

opening up the iPhone in Europe
opening up the iPhone in Europe

When journalists or analysts question Apple CEO Tim Cook about a complex, divisive international issue involving the iPhone manufacturer, he frequently responds that Apple abides by the law in every nation where it works.

Apple is trying to comply with a regulation that might demand significant modifications to the iPhone and jeopardise its successful app distribution strategy.

According to Bloomberg News, Apple is creating software to abide by new EU regulations set to take effect in 2024. Nothing is set in stone, but the source claims Apple is exploring modifications like enabling third-party browser engines, granting access to the phone’s NFC chip to wallet apps, and switching the charging port from the company’s exclusive Lightning connector to USB-C.

With these adjustments, long-standing consumer grievances would be addressed, and third-party applications, such as mobile wallets like PayPal’s Venmo and mobile browsers like Google Chrome, would have a better chance of competing with Apple’s built-in programmes. With the switch to USB-C chargers, most consumers would only need to bring one charger for their phone and laptop.

opening up the iPhone in Europe ; image from Barron’s

The most considerable alleged change, though, is that Apple is reportedly trying to permit direct downloads, or “sideloading,” of apps from the internet, including possibly third-party app stores, onto iPhones.

The only way to download iPhone software right now is through the App Store.

This initially addresses the most significant antitrust complaint Apple has had in the last ten years. Apple’s App Store, which deducts up to 30% of all digital sales made through any app it distributes, generates enormous profits for the company.

According to Bloomberg News, only Europe would be able to experience the improvements.

Although it’s not a tiny market, Europeans buy fewer iPhone apps than Americans. According to an estimate from Data.ai, a company that measures app downloads and spending, iOS app spending in the EU totalled around $6 billion out of the estimated $85 billion that the Apple App store has made so far this year. The exact estimate placed the U.S. retailer in charge of nearly $29 billion.

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