Apple Slashes App Store Fees Amid Ongoing Battle with Epic Games
Apple's latest move in its ongoing battle with Epic Games has sparked a fierce reaction from the gaming company and divided Wall Street analysts. The tech giant announced a reduced commission structure for iOS apps that send users to external websites for purchases, cutting standard link-out fees to 15% and introducing lower tiers for subscriptions and small developers.
The new plan was filed in U.S. District Court after the Supreme Court refused to pause a lower-court case, and Epic Games has already attacked the filing, arguing Apple's own cost math supports a 0% fee. The company plans to submit a formal objection within 60 days.
Despite the concessions, which may trim App Store revenue, Apple insists it must charge for the tools and services behind its ecosystem, pointing out that Google Play has a similar fee structure. For investors, the legal drama overlaps with a divided Wall Street view on Apple stock, with some analysts warning of slower iPhone upgrade trends and fewer carrier subsidies.
KeyBanc analyst Brandon Nispel remains a bear in this debate, reiterating a Sell (Underweight) rating with a $250 target price. He expects slower hardware and Services momentum, with 2027 revenue and EPS forecasts below the Street, underscoring the risk for shareholders if growth fails to match the current premium.