Consumer electronics giant Apple (AAPL) has cut its App Store fees from 30% to 15% for some app makers, provided that they enter into a new program administered by the iPhone maker.
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The “Mini Apps Partner Program” offers app developers a reduced fee in exchange for using some of Apple’s technology to build their apps. This includes using Apple software to register a user’s purchase history, verify user ages, and process in-app purchases.
A mini app is a piece of software that’s embedded in a third-party app store, such as Discord. These apps are typically built using web technology like HTML or JavaScript. The approach Apple is taking is similar to China’s WeChat, which offers millions of mini apps built by other developers. Artificial intelligence (AI) companies such as privately held OpenAI are increasingly integrating mini apps into their chatbots.
App Store Evolution
The approach to mini apps is Apple’s latest effort to grow and evolve its App Store. The company has been under pressure from regulators in Europe and the U.S. to give up control over its App Store and reduce the fees it charges.
In most countries, Apple’s App Store is the only way to install software on an iPhone device. In recent years, Apple has offered similar programs for video apps, news apps, and small app developers that reduce the fees charged in exchange for developers choosing deeper integration in Apple’s ecosystem.
Is AAPL Stock a Buy?
The stock of Apple has a consensus Moderate Buy rating among 35 Wall Street analysts. That rating is based on 21 Buy, 12 Hold, and two Sell recommendations issued in the last three months. The average AAPL price target of $289.80 implies 6.20% upside from current levels.
