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Tech Giant Apple Hits Back at Spotify For Antitrust Complaint: Report

The Cupertino, California-headquartered tech giant also alleged that Spotify was also trying to squeeze the artists, musicians and songwriters -- not just the App Store

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Apple, smartphone
Customers walk past an Apple logo inside of an Apple store at Grand Central Station in New York, Aug. 1, 2018. VOA

Taking exception to Spotify’s complaint with the European Union (EU) alleging that the iOS App Store rules are unfair, Apple has slammed the Swedish music streaming giant for wanting “all the benefits of a free app without being free”.

“A full 84 per cent of the apps in the App Store pay nothing to Apple when you download or use the app. That’s not discrimination, as Spotify claims,” Apple said in a statement.

In its complaint with the EU, Spotify said that Apple requires it and other digital services pay a 30 per cent tax on purchases made through Apple’s payment system, including upgrading from a free to premium subscription.

According to Spotify, if it pays this tax, it would force it to artificially inflate the price of its premium membership well above the price of Apple Music.

“And to keep our price competitive for our customers, that isn’t something we can do,” Daniel Ek, CEO of Spotify, wrote in a blog post this week.

Apple, Campus, China
A customer is entering the Apple store in Fairfax, Virginia. VOA

Apple said its revenue share is 30 per cent only for the first year of an annual subscription. It drops to 15 per cent in the years after.

“The only contribution that Apple requires is for digital goods and services that are purchased inside the app using our secure in-app purchase system,” Apple said, adding that building a secure payment system which allows users to have faith in in-app transactions was no small undertaking.

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The Cupertino, California-headquartered tech giant also alleged that Spotify was also trying to squeeze the artists, musicians and songwriters — not just the App Store.

“Just this week, Spotify sued music creators after a decision by the US Copyright Royalty Board required Spotify to increase its royalty payments. This isn’t just wrong, it represents a real, meaningful and damaging step backwards for the music industry,” Apple added in the statement. (IANS)

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Apple Begins Production of its Highly Successful iPhone XR in India

The iPhone XR demand further saw an uplift after the price drop and aided by heavy promotional activities in the ongoing festive season

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Apple, iPhone XR, India
According to the International Data Corporation (IDC), in the premium ($500 or Rs 35,000 and above) segment, Apple bettered Samsung for the leadership position with an overall share of 41.2 per cent in 2Q19. Pixabay

In a big impetus for its India manufacturing dream, Apple has started production of its highly successful iPhone XR in the country.

Multiple sources confirmed to IANS on Monday that the production of iPhone XR, that was launched last year but is still flying off the shelves, is up and running at Apple supplier Foxconn’s facility in Sriperumbudur, Chennai.

Riding on heavy promotional offers on iPhone XR, Apple regained top position in the premium smartphone segment in India in the second quarter (Q2) this year.

According to the International Data Corporation (IDC), in the premium ($500 or Rs 35,000 and above) segment, Apple bettered Samsung for the leadership position with an overall share of 41.2 per cent in 2Q19.

Apple, iPhone XR, India
Multiple sources confirmed to IANS on Monday that the production of iPhone XR, that was launched last year but is still flying off the shelves, is up and running at Apple supplier Foxconn’s facility in Sriperumbudur, Chennai. Pixabay

The iPhone XR demand further saw an uplift after the price drop and aided by heavy promotional activities in the ongoing festive season.

In a clear signal that India is Apple’s next growth market, Taiwanese smartphone manufacturer Foxconn’s Chairman Terry Gou recently said the company would begin mass production of iPhones in India this year.

Gou said the move “will get Foxconn more deeply involved in the development of the country’s smartphone industry” which currently has over 450 million smartphone users.

Foxconn is already expanding its manufacturing operations in India.

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“To start with, it makes sense for Apple to localise assembling of models that have the potential to scale up and then slowly expand it to entire portfolio,” Tarun Pathak, Associate Director at Hong Kong-based Counterpoint Research, told IANS recently.

The iPhone XR is available for Rs 44,900 online, with some great buy back and cash back offers.

Apple iPhone shipments grew 19 percent (YoY) in India in its last reported quarter.

Apple, iPhone XR, India
Riding on heavy promotional offers on iPhone XR, Apple regained top position in the premium smartphone segment in India in the second quarter (Q2) this year. Pixabay

Apple in August said it looks forward to welcoming customers at its first branded retail store in India soon.

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“We love our customers in India and we’re eager to serve them online and in-store with the same experience and care that Apple customers around the world enjoy,” Apple said. (IANS)