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TechCrunch primarily covers the startup humankind , but we keep at least one eye on Big Tech at all times . And there ’s perhaps no report more interesting in the world of technology giants than a changing of the guard : Microsoft has steal the “ most valuable ” crown from Apple and thing are getting interesting .
The changeover is not an idle one . Microsoft ’s association - up with OpenAI and its rapid deployment of AI tools into its various software system products has earned it privilege with investors , who foresee that it ’s going to deal to extractrevenue , growth , and profitsfrom all the AI - related work . Therelease of Copilot Prois a in force example of what Redmond is up to .
The Exchange explores startups , markets and money .
At the same time , Apple is consider its most decisive marketplace , smartphones , shrink as it run into sound challenge around the universe . The smartphone marketshrank 3.2 % last yearafter declining by amassive 11.3%in 2022 , grant to International Data Corporation ( IDC ) . The honorable news for Apple , however , is that the iPhone once again became the top - sell smartphone last year .
Still , you ca n’t make toward longsighted - term increase by lead a shrinking market place .
In contrast , Microsoft late helped resolvea governance and leading explosion at OpenAI , allowing Redmond to retain good - bulk possession of the for - profit arm of the AI company . That mean Microsoft is engrossed on bringing more AI kickshaw to its exploiter .
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Meanwhile , theU.S. Supreme Courthas declined to hear Apple ’s entreaty of the antitrust case brought by Epic Games , and in the EU , the company is reportedly prepare an App Store tosuit local regulation . Both of these developments could affect the ship’s company ’s ability to generate tax revenue from mobile mercantilism and its hardware and software package .
Apple is very big
First , a little context of use . In itsfourth quarter terminate September 2023 , Apple ’s taxation fell 1 % to $ 89.50 billion from a year before , and the party ’s gross also shrivel in the first nine months of 2023 compared to 2022 .
But all the same , Apple ’s last income in its Q4 2023 alone amounted to a walloping $ 23 billion . That ’s a just bonkers amount of money . Nothing that we are discussing today risks the companionship ’s exfoliation or ability to make lots of money . But small cuts can add up . Apple ’s shares are down more than 1 % today ; they ’ve fallen 6 % in the past calendar month , and over the past 12 months , they have climbed 35 % .
Is Apple losing ground?
Apple ’s appeal of the opinion in the Epic case was n’t only a question of principle ; there are billions at post here . The crux of the issue is its App Store , and whether Apple equipment owners can bypass it . Or : Whether app developer can distinguish airt user to complete their payments outside the App Store , thus forfend Apple ’s cut , which can be as high as 30 % .
Seeing its appeal push aside means that Applewill have to livewith the former jurist ’s determination : That while Apple had not plight in anticompetitive practice session , it will have to have developer channelize customer to their own websites and take payments outside of the App Store .
Losing that cut is obviously a concern for Apple , and itspersistence to keep itis trial impression of it . But it is probably even more distressing given that consumer spendingmay have slow up downon the App Store in 2023 . Again , have a huge slice of a shrinking cake is n’t typically what tech giant aim for . Even if the said sweet is deserving $ 171 billion .
App economic system convalesce in 2023 , with $ 171B in consumer disbursement , but downloads were matted
Today ’s word only adds to Apple ’s mounting list of worries regarding its App Store . Indeed , the EU ’s Digital Markets Act ( DMA ) and its measuresto check Big Techcould squeeze Apple toallow sideloading — that is , third - party app stores , albeiton the continent only . And to make matters worse , we see last year that Microsoft is be after tobuild its own peregrine games computer storage .
Yeah, but
Apple is hardly lead to rent Microsoft persist the biggest tech company in the world without a battle . The fellowship ’s upcoming Vision Pro headset and platform could become a lucrative venture , and there ’s supposed to bean Apple carout theresomewhere . Also , it ’s no question Apple will have its own AI - powered tech in prison term .
In few words , Apple in all likelihood has flock on the style that should keep it in the game . But with nearly all of tech combat to become the first to gain the AI race while smartphone sales slow and court cases knap away at its legacy taxation streams , the iPhone Creator has its workplace geld out for it .
