Apple is best known for its iPhone products, its iPads, its Mac computers and Macbook laptops, Apple Watch and some others.
It's also known for its Apple ecosystem, with iOS and iPadOS controlling all mobile devices Apple created, its App Store that sparked numerous controversies, and more.
But what it is less known for, is its gaming business.
While the company has yet to produce its gaming console or a product to market itself as a gaming company, Apple is already earning lots of money from its share of in-app purchases done by gamers on its platform.
In an earnings filing, about 70% of all of its App Store revenue comes from gaming apps. That revenue is generated by less than 10% of App Store users.
Signs that Apple is seeing the increased importance of gaming, include the company believing that is competing with PlayStation, Nintendo and Xbox.
In a corporate file, Apple said that:
Previously, Apple only said that it would compete Google Chrome browser, Microsoft Windows, Android and PCs.
This time, at its SEC filings, Apple did not list gaming hardware as its competitor.
Earlier, Apple was said to monopolize the market to its own advantage. The issue made headlines after Fortnite creator Epic Games sued Apple.
But this time, Apple is playing things safe.
In the end, the judge ruled that Apple did not have a monopoly on the “mobile game transactions”, but ordered the company to change its business practices and allow developers to incorporate payment methods that Apple did not manage.
According to estimates, revenue of Apple's App Store in 2020 were over $64 billion.
This number is up 27% year-on-year. Apple does not separate revenue from components of services including subscriptions, extended warranties and advertising.
According to Apple, revenue in the service business increased due to the growth of advertising, the App Store and the cloud. However, Apple has warned that its advertising business could be affected by additional research by other technology companies.
“For example, the company generates revenue through licensing agreements with other companies, providing its search services on the company’s sites and applications, and some of those agreements are currently subject to government investigation and legal action,” Apple filed.
That amount is larger than what companies like Microsoft and Nintendo. Activation Blizzard And Sony, have all earned.
During this time around, Apple is increasingly responding the the needs of gamers on its platforms.
For example, Apple’s 2021 iPhone 13 Pro models and the MacBook Pro models support a a 120Hz refresh rate, a feature that is popular to gamers due to its smooth experience.
