- As iPhone sales slip, Apple has been positioning its booming digital-services business as its new profit engine. But there could be a snag in that plan.
- A brewing backlash against the rich commissions Apple earns from all purchases and subscriptions made via iPhone apps could undercut the app store, which generates about a third of the company’s services revenue.
- Late last year, Netflix rebelled against Apple’s fees, which can range from 15 per cent to 30 per cent. Analysts fear other companies may follow.
- Attorneys representing consumers in a pending Supreme Court case also charge that Apple is an unfair monopolist in the market for iPhone apps. An adverse decision could open a legal door that might eventually force Apple to cut its generous commissions.