Third-party app store on iPhone unlikely to affect Apple in a big way: Report

With the latest EU regulations, upcoming Apple iPhone models might feature a USB Type-C charging port and could even support sideloading of apps.

Apple might allow sideloading of apps on iPhones in at least Europe from 2024 (Image credit: Apple India)

As much as Apple devices are known for their privacy, security, and performance, they are also known for restrictions, especially when it comes to app sideloading. This could all change with the latest EU regulation, where, Apple might have to allow third-party app stores on iPhone and iPad.

Starting with 2024, Apple has to allow third-party app stores on its devices as per EU’s Digital Markets Act. However, a new report from an analyst from Morgan Stanley suggests otherwise, according to 9to5Mac, which accessed the research note. The note says that even if Apple enables sideloading of apps on the iPhone, this will a “limited risk” on the company’s revenue.

Also read: | Apple increases App Store pricing tiers as it seeks to give more power to developers

According to the report, Apple users are likely to stick on to the official app store instead of sideloading to maintain “security, centralization, and convenience.” The report also suggests the regulation on allowing third-party app store on iPhones and iPads is mostly regulatory driven and not something that consumer wants.

It even suggests that only less than 30 per cent of iPhone users might prefer buying an app directly from the developer instead of the Apple App Store.

Do note that this feature could only be limited to Europe, and with the regulation in place, Apple could just lose 1 per cent of its total revenue or 4 per cent of its service revenue, indicates the report. It is also said that Apple still could get some cut even from the third-party apps as a platform charge. As of now, it is currently unclear how Apple will enable third-party app stores and sideloading of apps on iPhones.