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Apple in Court Battle Over App Store

If Apple fails to overturn the previous decision, the company is likely to face years of legal wrangling in a case that dates back to 2011

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Apple, Iphone XR, Apple Watch
Try these fitness apps on Apple Watch Series 4 for marathon season. Flickr Commons

Apple will head to the US Supreme Court this week to block a group of customers from suing the tech giant for monopoly abuse, media has reported.

The company is battling a group of iPhone owners who claim Apple forces them to overpay for apps by forbidding rivals to the multibillion-dollar App Store.

After the customers won the right to launch a class action lawsuit against the company in 2017, Apple is now appealing to the Supreme Court to have the decision overturned, The Telegraph reported late on Saturday.

If Apple fails, the business model of the App Store, one of the company’s fastest-growing and most profitable divisions, could be threatened, it added.

Apple makes billions each year by taking a 30 per cent cut of apps sold through the App Store, which are created by developers. App revenues grew by around a third in 2017 to $38.5 billion even as sales of Apple’s iPhones and iPads stalled.

The customers argue that its sizeable commission is evidence of the company exploiting its monopoly position over iPhone users. They argue that “iPhone consumers nationwide have paid (Apple) hundreds of millions of dollars more for iPhone apps than they would have paid in a competitive market”.

Apple
An Apple store in Woodbridge, Virginia. (VOA)

Apple is seeking to dismiss the case by appealing to a Supreme Court ruling made in 1977 that said only “direct purchasers” can seek damages for antitrust abuse.

The company argues that because the app developers themselves set the price of apps in the App Store and not Apple, iPhone users are purchasing the apps from the developers directly.

Its opponents claim that because Apple sets the rules about the App Store, such as the minimum price, it is effectively selling the apps on to users.

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The Supreme Court is due to hear the arguments on Monday, although it is likely to take months until its judges announce any decision.

If Apple fails to overturn the previous decision, the company is likely to face years of legal wrangling in a case that dates back to 2011. (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)