“Apple Inc. has seen its challenges multiply in the all-important China market over the past year or so, from declining market share to increased government scrutiny,” Li Yuan reports for The Wall Street Journal. “Now, its effort to wring more revenue from Chinese iPhone users may be setting the company up for more trouble.”
“Last month, Apple told several Chinese social-networking apps, including the wildly popular messaging platform WeChat, to disable their ‘tip’ functions to comply with App Store rules, according to executives at WeChat and other companies,” Li Yuan reports. “That function allows users to send authors and other content creators tips, from a few yuan to hundreds, via transfers from mobile-wallet accounts.”
“Now, those tips will be considered in-app purchases, just like buying games, music and videos, entitling Apple to a 30% cut,” Li Yuan reports. “While it’s understandable that Apple wants to tap the App Store for more money, its pressure on the app platforms risks alienating powerful Chinese companies, turning off Chinese iPhone users and drawing unnecessary attention from the regulators.”
Read more in the full article here.
MacDailyNews Take: Apple, like many Samsung phone users, seems to enjoy playing with fire.