Posts in news

Apple Reports Quarterly Revenue of $90.8 Billion for Q2 2024

Last quarter, Apple reported revenue of $119.6 billion, which included the holiday season and the first full quarter of iPhone 15 sales. Although Apple hasn’t provided financial guidance since the COVID pandemic, the company warned investors to expect a $5 billion year-over-year drop in revenue for its second fiscal quarter. However, the actual Q2 results were better than expected.

Today, those earnings are out and Apple reported Q2 revenue of $90.8 billion. As Apple reminded investors last quarter, Q2 2023’s revenue numbers were unusually high due to pent up demand for the iPhone 14 Pro and Pro Max, which were in short supply during the company’s first quarter of 2023 due to COVID-related factory shutdowns.

According to Apple CEO Tim Cook:

“Today Apple is reporting revenue of $90.8 billion for the March quarter, including an all-time revenue record in Services,” said Tim Cook, Apple’s CEO. “During the quarter, we were thrilled to launch Apple Vision Pro and to show the world the potential that spatial computing unlocks. We’re also looking forward to an exciting product announcement next week and an incredible Worldwide Developers Conference next month. As always, we are focused on providing the very best products and services for our customers, and doing so while living up to the core values that drive us.”

Going into today’s earnings call, the consensus among Wall Street analysts was that Apple would earn 90.37 billion an expected decrease that would a little less than the projected decrease cited by the company during its last earnings call. However, Apple beat both Wall Street expectations and its guidance.

The iPhone remains the cornerstone of Apple’s revenue. However, with sales down in China, analyst concern over whether Apple will incorporate AI into its products this year, and regulatory and antitrust pressure in the US and EU, the company’s outlook for the remainder of 2024 and into 2025 is more uncertain than ever.

Apple Changes How the Core Technology Fee Works and Confirms that Its Alternative Business Terms Will Apply to iPad Apps This Fall

One of the most controversial aspects of Apple’s response to the EU’s Digital Markets Act (DMA) was the introduction of a Core Technology Fee (CTF), which must be paid by developers who opt into Apple’s alternative business terms. Today, in a post on its developer website, Apple announced changes to the CTF and regarding the treatment of iPadOS, which was added to Apple’s DMA compliance obligations earlier this week.

The problem was that the CTF as originally conceived applied to all apps, including free apps. If a developer offered a free app and had first annual app installs of over 1 million installations, they would owe the €0.50 per installation fee, regardless of the fact they earned no income from the app. The fee, as proposed, would likewise be a problem for developers with other sources of income that weren’t enough to pay the CTF.

Today, Apple made two changes to the way the CTF works:

  • First, no CTF is required if a developer has no revenue whatsoever. This includes creating a free app without monetization that is not related to revenue of any kind (physical, digital, advertising, or otherwise). This condition is intended to give students, hobbyists, and other non-commercial developers an opportunity to create a popular app without paying the CTF.
  • Second, small developers (less than €10 million in global annual business revenue*) that adopt the alternative business terms receive a 3-year free on-ramp to the CTF to help them create innovative apps and rapidly grow their business. Within this 3-year period, if a small developer that hasn’t previously exceeded one million first annual installs crosses the threshold for the first time, they won’t pay the CTF, even if they continue to exceed one million first annual installs during that time. If a small developer grows to earn global revenue between €10 million and €50 million within the 3-year on-ramp period, they’ll start to pay the CTF after one million first annual installs up to a cap of €1 million per year.

The first change should take care of the free app scenario regardless of its popularity. The second change is designed to transition small businesses into paying the CTF. The first time a business with less than €10 million of global annual revenue crosses the CTF threshold, they won’t pay the fee. They will, however, have to start paying the fee up to a €1 million cap if the business’ global annual income grows to between €10 million and €50 million in that 3-year period. If revenue exceeds that range, the cap on the CTF presumably would not apply.

In the same post, Apple confirmed that the same EU rules that apply to iOS will begin to apply to iPadOS this fall and that a download of an app on both iOS and iPadOS will only count as one annual installation for CTF purposes.

Apple Introduces Three of the Distinguished Swift Student Challenge Winners

Earlier this week, Federico and I interviewed two of the Swift Student Challenge winners on AppStories, which was a lot of fun. A new feature of the 2024 competition was the addition of Distinguished Winners. As Apple explains it in a press release published today:

Out of 350 winning submissions, 50 students have been named Distinguished Winners for building app playgrounds that stand out for their innovation, creativity, social impact, or inclusivity. These 50 students have been invited to a three-day in-person experience at Apple Park that includes tailored programming and the special event at this year’s Worldwide Developers Conference (WWDC), where they’ll join like-minded creators from all over the world.

Apple’s press release includes profiles of three of the Distinguished Winners: Elena Galluzzo, a college student from Canada, Dezmond Blair, from Canton, Michigan, and Jawaher Shaman, who is studying at the Apple Developer Academy in Riyadh, Saudi Arabia.

Elena Galluzzo’s winning app is an assistant for seniors:

Galluzzo designed Care Capsule to be an all-in-one assistant for elderly people. She used Apple’s machine learning framework Create ML to build a chatbot that analyzes interactions with the user to deduce whether they are experiencing loneliness or depression. The app also lets users track their medications, connect with community resources, and keep a record of positive memories.

Dezmond Blair, who attended the Apple Developer Academy in Detroit, built MTB XTREME, an app that

…puts users behind the handlebars of a mountain bike, offering a 360-degree view of the trails around them.”

Finally, Jawaher Shaman created an app called My Child to help people with speech conditions:

My Child tells Shaman’s story through the eyes of a child who stutters, and features characters inspired by her father and grandfather. The app guides users through exercises that help slow down their breathing and prepare them for real-life experiences like reading a story in class. Shaman used AVFAudio to add sounds that mimic the way her father would break sentences into small, more manageable parts.

Every year, I’m impressed with the projects students come up with for the Swift Student Challenge, and this year is no exception. Harshitha Rajesh and Roscoe Rubin-Rottenberg, whom Federico and I spoke to Monday, as well as the Distinguished Swift Student Challenge winners whose projects Apple featured today, are great examples of the sort of impactful projects that students from 35 countries and regions have created for the Challenge. It’s great to hear that 50 of the students will be at WWDC this year. Hopefully, Federico and I will have the chance to meet a few of them.

Assassin’s Creed Mirage Is Coming to iPhones and iPads on June 6th

At last fall’s iPhone event, Apple and Ubisoft announced that Assassin’s Creed Mirage would be coming to the iPhone 15 Pro and Pro Max. Today, Ubisoft confirmed with a press release that the game is coming on June 6th, just before WWDC. In addition to the iPhone, the game is coming to iPad Air and iPad Pro models with an M1 chip and later, which includes the 5th generation iPad Pros released in the spring of 2021 and later, as well as the current iPad Air.

According to Ubisoft’s website:

Developed by Ubisoft Sofia, these ports offer an intuitive, comfortable and engaging gaming experience with optimized touch controls and controller support. Cross-save and cross-ownership will also be available for players to enjoy the game between iPhone and iPad as they please.

The game will also be a Universal Purchase that will work across the iPhone and iPad and will be free to download and play for 90 minutes. The full version of Mirage will unlockable for $49.99. If you’re interested in pre-ordering Assassin’s Creed Mirage, you can do so now on the App Store.

Assassin’s Creed Mirage launched on consoles and PCs last fall to favorable reviews. I’m looking forward to giving it a try on the iPhone and iPad, but I’m a little disappointed that it’s not also launching on the Mac.

The EU Pulls iPadOS Into the DMA Fray

Today, the European Union announced that it has added iPadOS to the products and services subject to the Digital Markets Act (DMA). The designation gives Apple six months to comply with the DMA.

In a press release, the European Commission said:

The Commission’s investigation found that Apple presents the features of a gatekeeper in relation to iPadOS, as among others:

  • Apple’s business user numbers exceeded the quantitative threshold elevenfold, while its end user numbers were close to the threshold and are predicted to rise in the near future.
  • End users are locked-in to iPadOS. Apple leverages its large ecosystem to disincentivise end users from switching to other operating systems for tablets.
  • Business users are locked-in to iPadOS because of its large and commercially attractive user base, and its importance for certain use cases, such as gaming apps.

On the basis of the findings of the investigation, the Commission concluded that iPadOS constitutes an important gateway for business users to reach end users, and that Apple enjoys an entrenched and durable position with respect to iPadOS.

In a statement to Bloomberg, an Apple spokesperson said that:

…the company remains focused on delivering for European consumers, “while mitigating the new privacy and data security risks the DMA poses.”

iOS is already subject to the DMA, and Apple’s response meant that actions it took to comply with the law did not apply to iPadOS, leading to incongruous differences between the platforms. With the addition of iPadOS under the purview of the DMA, I expect some of those differences will need to be ironed out.

Supercell Announces That Squad Busters Will Be Released Worldwide on May 29th

Earlier this week, Supercell soft-launched Squad Busters, a party action game, in Canada, Mexico, Spain, Denmark, Norway, Sweden, Finland, and Singapore. Today, the company announced that the game will launch on iOS and Android worldwide on May 29th.

According to Supercell’s CEO, Ilkka Paananen:

Our dream is to create great games that as many people as possible play for years and that are remembered forever. Huge credit to the Squad Busters team – it’s already apparent that the game has such high potential, making it our first company game launch since Brawl Stars in 2018. Squad Busters brings together our Supercell characters in a fun way that fans have never seen before and I can’t wait to see the reactions from players across the globe!

I haven’t had a chance to play Squad Busters yet, but from the demo Supercell shared with me, it looks like an interesting addition to its lineup, which includes popular titles like Clash of Clans. The Supercell team likens Squad Busters to the fun, chaotic competition of classic games like Mario Kart. Players compete against friends and online squads in ten-person, four-minute matches that are populated with characters from across Supercell’s stable of games, collecting gems and other items. Along the way, characters evolve in a style similar to Pokémon games.

Squad Busters may superficially look a little like a last-person-standing battle royale game, but Supercell says its goal was to design a competitive action game that is accessible to players of all skill and experience levels. To that end, prizes are awarded no matter where you finish among the squads competing during a match. It’s not easy to design a game that appeals to such a broad spectrum of gamers, but if Supercell can manage it, Squad Buster’s colorful, frenetic, one-button gameplay has the potential to become a big hit. In that same vein, Supercell has worked to make sure that the game works on multiple generations of hardware as far back as the iPad mini 2.

Clash of Clans and Supercell’s other games have never appealed to me, but Squad Busters is intriguing. The gameplay I’ve seen looks fun, and I can see it working as a way to introduce a new wave of gamers to the company’s other titles.

Squad Busters is available for pre-order on the App Store now.

Apple Announces May 7th Let Loose Event

Today, Apple announced that it will be holding a video event on May 7, 2024 at 7 AM Pacific.

The announcement, which was sent to members of the press, doesn’t specify what it is about, but based on the illustration in the invitation, which clearly depicts an Apple Pencil, and based rumors, I expect the company will reveal new iPads and related accessories.

Game On: Speed Running Game Emulation on iOS

Delta.

Delta.

Game emulators are nothing new to mobile phones. That is unless you have an iPhone. There’s a long history of emulation on Android and an even longer history on Macs, PCs, and other platforms. However, with ‘retro game console emulators’ (Apple’s App Review Guidelines term) now allowed worldwide on iOS, we’re seeing the iOS world speed-running game emulation. It will be a while before iOS emulators catch up to Android and other OSes, but in just over a week, there’s already been a lot of news.

It started with a Commodore 64 emulator.

It started with a Commodore 64 emulator.

The short-lived Bimmy.

The short-lived Bimmy.

  • About the same time that iGBA was being pulled from the App Store by Apple, Bimmy, an NES emulator, appeared on the Store for $0.99. It, too, was pulled from the Store within a day or two, but this time, it was the developer who pulled it, not Apple. Tom Salvo, Bimmy’s developer, told Zac Hall of 9to5Mac that he pulled the app “out of fear” and not as the result of pressure from anyone.
Delta works with a variety of classic systems.

Delta works with a variety of classic systems.

  • Then, last Wednesday, Delta, Riley Testut’s game emulator that supports a long list of older Nintendo systems and the Sega Genesis console, was released on the App Store everywhere except the EU, where it is available on AltStore. Within hours, Delta shot to the top of the App Store’s Free Apps Top Chart, where it remains today.
  • In the wake of Delta’s success, other developers have announced that they plan to bring their game emulators to iOS, including the maker of the Sony PSP emulator PPSSPP and the developer of Provenance, which works with multiple systems.
  • The rush to the App Store by emulator developers isn’t universal, however. The creators of Dolphin, which works with Nintendo GameCube and Wii games, announced that it will not be coming to iOS because Apple doesn’t allow the necessary Just-In-Time recompilers to be integrated with game emulators.

Meanwhile, all eyes are on Nintendo. The company is notoriously protective of its intellectual property. And, although Nintendo has not sought to restrict the availability of emulators for its oldest systems, it aggressively pursued the makers of Yuzu, a Switch emulator, which resulted in the emulator being forced from the Internet with other emulators following suit. So, while emulators for early Nintendo systems have been available elsewhere for years, the sudden mainstream popularity of Delta on the App Store could draw an unwanted reexamination of emulators by the company. My hope is that instead of litigation, the new crop of iOS emulators spurs Nintendo to offer older games on the App Store and via other channels, but history isn’t on the side of my hopes and dreams.