With the new Apple Silicons, iPhones, iPads, and Macs garnering rave reviews and record sales, Apple had a great 2021. But there were still some hiccups. Here are Apple’s three biggest losses in 2021.
Yes, 2021 was a great year for Apple. With an impressive flow of ever-innovative products, from redesigned iPhones and refurbished iPads to powerful new Macs, and record-breaking revenue to boot, the year certainly offered a lot to celebrate for Apple. But, as is common in any business, the year also offered some challenges, and some losses accompanied the company’s many victories.
Here are Apple’s three biggest losses in 2021.
- App Store Court Decision Affects Apple’s Revenue Sharing Practices
For years, Apple received thirty percent of sales from in-app purchases distributed through its app store. The corresponding revenues were impressive, totaling tens of billions of dollars annually. Yet under pressure from developers for years, Apple in 2020 lowered its app commission to fifteen percent for programs that generate less than a million annually in net sales on Apple platforms. Then, in September 2021, the company lost a federal court verdict, followed by an unfavorable appellate court ruling in December, further reducing its stronghold on the App Store.
In the September verdict, a federal judge ruled in the revenue sharing case brought by Epic Games that Apple could no longer prohibit app developers from including links and other communications directly within their app distributed through Apple that away to Apple Store users to make purchases. . Therefore, it is unlikely that Apple will subsequently receive a corresponding percentage of the resulting revenue.
Possibly anticipating the failure, Apple announced in august that, pending court approval, the company would settle a class action lawsuit brought by developers by extending more adaptations for developers, including sharing out-of-app purchase options with users and allowing broader price ranges for subscriptions , in-app purchases and paid programs. With annual App Store sales estimated at more than $ 60 billion, that’s a decided loss for Apple, which previously prohibited such behavior that allowed developer customers to make purchases outside of its App Store infrastructure.
SEE: Apple iOS 15 Cheat Sheet – Everything You Need to Know (Free PDF) (TechRepublic)
2. The new self-service program reverses the course envisioned by Apple
In a second shift to another ingrained mindset, Apple has historically prohibited users from performing authorized iPhone repairs without voiding the device’s warranty. The company’s new self-service repair program, announced in november, will provide users with authorized repair manuals and access to genuine Apple parts to help users feel comfortable performing their own hardware repairs. While the program begins with the most common repairs (screens, batteries, and cameras) for iPhone 12 and 13 products, the initiative is expected to soon grow to include Macs with Apple’s own M1 chips.
The so-called right to repair movement may claim Apple’s self-service repair program as a major victory, as the effort marks a significant change for Apple. Previously, the company struggled to direct such repairs to its own stores and 2,800 authorized repair providers, which it still claims will better serve repair needs “for the vast majority of companies. [its] customers.”
While it is unlikely to cost Apple significant revenue in the future, the fact that the company gave in to the pressure to repair should qualify as a 2021 loss. The company closely monitors hardware and production in its endeavor. for maintaining quality and eliminating compatibility issues that commonly arise when working with disparate hardware components, and while the company is delivering a win to the repair crowd, it should help Apple make the repair program Self-service still requires the use of original Apple components and processes.
SEE: Apple’s 3 biggest wins of 2021 (TechRepublic)
3. Another pandemic WWDC without in-person networks
Apple’s annual in-person events essentially mimic religious revivals for the company’s faithful. Due to the ongoing COVID-19 pandemic, the year marked the second year in a row that developers, administrators, managers, and other technical professionals were unable to physically attend Apple’s main conference, missing some of the excitement. , the commitment and the fervor of the initiative. personal events help create and maintain.
The news came at the end of March that the World Developers Conference (WWDC) in June 2021 would once again be held as a fully online event. While video conferencing, remote collaboration platforms, cloud computing, and a variety of other technologies have helped millions convert and continue working from home during the pandemic, there are still numerous personal interactions, random match-ups, and in-person presentations and learning sessions for which there are no real substitutes. There are so many advantages, and the joy of interacting socially with each other, that we all applauded heavily in the early summer when it seemed, incorrectly, that the pandemic might be ending.
However, the business continues. Now, with Apple announcing in December that it would provide employees with a thousand dollars to equip their home offices for continuous remote work and delaying their return to their corporate offices at a time when, with the new variant of COVID-19 Omicron spreading quickly, it can’t even be predicted, the setback should be counted as a loss. While Apple is not responsible for the setback, and while the company acted responsibly by converting the 2021 WWDC to a fully online format and postponing the planned February 1, 2022 return to its corporate offices, the challenge is a downside that has specific downsides that require everyone to work much harder just to maintain the status quo. And anyone familiar with Apple knows that the company is far from satisfied with average performance.