Survey shows most iPhone users will stick to Apple’s App Store walled garden

Apple is reportedly working to allow iPhones and iPads to access third-party app stores in order to comply with new European Union requirements scheduled to go into effect in 2024, but most iPhone users will stick to Apple’s App Store, according to a survey conducted by Morgan Stanley.

Apple's App Store on iPhone
Apple’s App Store on iPhone

Dan Gallagher for The Wall Street Journal:

According to a survey by Morgan Stanley, only 27% of iPhone owners say they are “extremely likely” to purchase an app directly from a developer’s website as opposed to using the App Store. And Apple could still enact other rules for those developers who skirt the App Store that add new fees—thus negating the loss of commission. “We believe alternative app stores could introduce a larger cost burden on developers,” Morgan Stanley analyst Erik Woodring wrote in a Dec. 14 report.

Much remains unknown about what exactly Apple might do in response to the EU law—and how broadly those changes will apply. The Wall Street Journal reported on Friday that the company is currently debating whether the sideloading changes would be limited to Europe or applied globally.

Mr. Woodring estimates that complete loss of App Store revenue from Europe would hit total company revenue by only 1%.

MacDailyNews Take: Yup.

Those who want safety, security, and privacy will stick to Apple’s App Store, but a single point of control is always a danger, especially when it comes to capricious censorship (see: pre-Musk Twitter, Apple’s App Store in China, etc.).

iPhone and iPad users must, like Mac users, have the ability to install third-party apps; even if they never do, for it will keep Apple honest. The ability to ban an app loses all power when it’s simply available in another App Store.

These moves, including removing the mandate to use WebKit, Apple’s Safari browsing engine, in third-party browsers, as Gurman also reports Apple is considering, will greatly reduce, if not eliminate, the threat of anti-trust actions against Apple for the foreseeable future.

Also, expect Gatekeeper to come to iOS and iPadOS from macOS.MacDailyNews, December 13, 2022

Adding the ability to access third-party app stores for iPhone and iPad also removes a selling point for Android phones and tablets, a crucial selling point for some, that is likely to result in further acceleration of Android to iPhone upgraders. So, third-party app stores for iPhone and iPad won’t hurt Apple too much. In fact, it might even benefit Apple.MacDailyNews, December 14, 2022

Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!

Shop The Apple Store at Amazon.

25 Comments

  1. It remains to be seen how developers deal with this. There must be a temptation to only offer an app on their own store to maximise revenue, but personally I would be wary of loading any apps from anywhere other than the Apple App Store.

    A company trying to avoid using Apple’s App Store could stand to lose out on a lot of sales.

    1. Users should have choices on where to buy, developers should have choices on where to sell. MS and Adobe and Steam and myriads of others currently have existing digital infrastructures, they don’t need Apple for that.

      Abobe and MS don’t even need the App Store for the user base, but they could offer on many stores, including Apple’s, but with a 30% discount in their own.

      And for Apps not allowed in Apple’s store this is justice.

      1. Disagree. Apple created the App Store model and Apps on iPhones in the first place behind a secure walled garden. They owe NOTHING to Johnny come lately copycats and me-too competitors with Fragmadroid inefficiency and virus threats slumming in a threatening world.

        Regarding your false high horse claims users already have a choice where to buy and developers have choices where to sell, where have you been? Every endeavor has standards, qualifications and rules to follow.

        Your Leftist ideology gambit to FORCE EQUALITY on private businesses does not apply! Like yourself, the socialist Leftists in the EU are dead wrong…

        1. Apple did not come up with the App Store model, they were called stores or repositories before and they existed with PC, Symbian, Windows Phone, etc., long before the App Store.

          Apple does not own my device, or the 3rd party apps, and it seems that the law agrees.

        2. A repository is not exactly an App Store Apple made world famous and a household word, but not the main point.

          You CANNOT FORCE EQUALITY on private businesses. Yes you own the Apple device, but you agree to a contract Apple licenses to users. So, buy an Apple phone and forget about and don’t us the Apps you’re complaining about getting from Apple or elsewhere.

          Problem solved…

        3. OK, I’ll concede Apple was late to the miniature game the average person did not know existed. I have been using Apple Pro computers since the 1980s and PCs starting in the 1990s and never heard of them. A very minor point that strays from the main points, AGAIN…

        4. Considering that your list of prior device experience appears to lack PDA/feature phone devices, it’s not surprising that you believe the average person primarily using Apple Pro and PCs did not know the app stores existed.

        5. You mean like paying a 30-year mortgage on a property you own and miss one years worth of property taxes and in less than another year the government evicts you, seizes your property and sells it for profit and pockets it all. That the kind of “sovereignty over one’s property” you are talking about?…

        6. No kidding, you must pay your home off before you own it, who knew?

          As I wrote the average mortgage term for most Americans is 30 years and after paying it that long, yes, of course its paid off and you own it. Gave you credit for reading between the lines instead of spelling it out like a First-Grade teacher every proper syntax. AGAIN, off the main topic you can’t DISAGREE with and instead, like most Leftists a one-line preachy pinhead retort. Gotcha! Well, you did not disappoint there.

          Took note you did not object, so safe to say you SUPPORT Big Government “sovereignty” taking your paid home at ANYTIME over non-payment of one year of property taxes. Specifically, a mere pittance of a couple thousand dollars confiscating the average American home priced over $450,000. Then the good Government thieves using the law to full advantage against its hard-working citizens during the worst economy government itself created, confiscate their homes, and pocket the profits. How wonderful!

          Again, I did not hear you have a problem with Government “sovereignty over one’s property” specifically your residence — only Apple iPhone, correct? OK, let’s compare when your two-year Apple Card iPhone mortgage missed payments, what happens. Does Apple send the repo man to confiscate your phone and sell on the auction block for profit like the government, doubtful.

          To correct you, the “sovereignty” is not the phone. Agree you DO own it but like a home, only when it’s paid off. Apple’s “authority” a less loaded OMG word is over there and pay attention – SOFTWARE LICENSE AGREEMENT you AGREED and SIGNED.

          So, this is very simple you don’t like your significant other, don’t enter a marriage contract. You don’t like Apple’s terms of service – don’t buy an iPhone. But knowing you my friend, suspect you will incessantly bitch about something you cannot change, SHOULD NOT CHANGE, until you take a dirt nap…

        7. I don’t like draconian measures, but home seizure is to liquidate and pay the debt. Ideally, it should be sold at fair market value and return any excess to you or other creditors. I’m sure that’s always what happens.

          Meanwhile the incorporation into cities automatically means you never really own your home, as city ordinances IMO frequently violate the Constitution, but private incorporation likely dodges that.

          Still,.,. I own my gizmo, Apple doesn’t.

        8. Correction:Not what always happens…

          Apple is in no position to dictate TOS over property it does not own. Especially over a unilateral, unegotiated contract. Or should we hire lawyers and have a closing?

          If Apple wanted that control, they should not allowed 3rd party Apps. They should develop only their own, or buy the 3rd party code outright. And still that wouldn’t change the argument much. If they leased the devices then they can do so more legitimately.

          Or are you to tell me MS gets to decide what’s allowed to run on Windows?

        9. “I don’t like draconian measures, but home seizure is to liquidate and pay the debt.”

          You have not thought this through completely. You can’t have it both ways. No matter what you think of draconian measures, you are on record to support the process to pay the debt. Problem is, you did not say what type of debt.

          Example: Paid off a 30-year mortgage, therefore bank loan debt retired, you receive DEED to your home registered in the courthouse – YOU OWN IT. But if you miss one year of property taxes owed to the government, they can confiscate and sell your property for a few thousand dollars. Not a bank foreclosure or default, a government confiscation and sale of your property is the kind of debt we are talking about here. So, in the above scenario — do you STILL support the government confiscating property you OWN? I can see the smoke coming out of your ears.

          Twice yearly in my county they have a Sheriff Sale Auction listing hundreds of home foreclosure sales in agate type advertised in the newspaper over several pages for lack of paying either property taxes to the government, or your bank loan, or both.

          “Ideally, it should be sold at fair market value and return any excess to you or other creditors.”

          Exactly my Number One issue with most your posts — IDEALISTIC NAIVETE. Wishing something ideal, does not translate into reality. But will credit a good heart.

          REALITY example: Last year a 45-acre mountain property half a mile from where I grew up, paid off a century ago, went up for Sheriff Sale for lack of paying property taxes to the government. Close to $2,000 dollars in back taxes owed and the latest property assessed value by the county worth over $85,000. During the auction, I successfully bought seized property for just over $1,400. I highly doubt the aggrieved property owner received a penny.

          “Still,.,. I own my gizmo, Apple doesn’t.”

          So, what’s your point? You sign (Select Button AGREE) user agreement for free use and pay attention – ON APPLE’ S TERMS. Otherwise, you are in breach of contract. Again, nobody forced you to buy the phone, a house, sign a marriage contract, royalties distribution agreement if you are a musician, etc. etc., etc.

          “Apple is in no position to dictate TOS over property it does not own.”

          Apple is the only one to enforce the user agreement you signed off on and if you don’t like the terms — don’t buy the phone, get a grip already.

          It’s adult time and please think like one…

        10. Oh… I thought it through. TOS are questionable contract law at best. Enforcement is suspect. “Fair Use” of software is now a legitimate copyright use principle.

          I repeat… Apple does not own my device. They sold it to me in exchange for money, and they can kiss off!

          Then there’s anti-trust law which is what is really causing this opening up. Ant-Trust law exists to protect the consumer by promoting fair competition. Heck, not just a store, someone ought to write a third party compiler!

          Suck it up buttercup!

        11. “I repeat… Apple does not own my device. They sold it to me in exchange for money, and they can kiss off!”

          Like a Democrat Drone you keep repeating the same LINE we all know to be true.

          And I repeat like a Democrat DEFLECTOR you do not own up to the fact that you signed AGREE to use the phone and software you are granted license to use from Apple by your purchase.

          Suck up that reality you continually DODGE!…

    2. While I agree that you should be wary of loading any app from other than an official App Store, large well known companies that have brand reputations to uphold would probably be very safe places to do so or risk degrading the brand. In that particular case I doubt that well known companies would stand to lose much app sales at all while avoiding commissions charged by App stores. Wonder how large a chunk of App Store revenue is coming from sale of Apps by well known brands/companies.

  2. “Mr. Woodring estimates that complete loss of App Store revenue from Europe would hit total company revenue by only 1%.”

    The question here is 1% of company App Store revenue or is it a spin on 1% of company revenue which the App Store is but one part.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.