Apple and Google have removed Fortnite from their app stores after the game implemented its own in-app payments.
Epic Games, the maker of Fortnite, responded by filing a lawsuit against Apple.
Four market watchers weigh in on the impact.
Alex Kantrowitz, founder of Big Technology, explains why Apple should return.
“Apple should return because collecting rent is bad for its business. So you as a business have to decide, do you want to make your money when you activate milk or do you want to innovate your money in the future?”
Dan Niles, founder of AlphaOne Capital Partners, says Epic Games made the choice to feature in Apple’s store.
“I mean, I’m having a lot of issues with Apple, but the charges they put in the App Store are not one of them. I mean, at the end of the day, Epic Games chose to go on the platform. if they did not want to do it, they would not, and they would benefit greatly from the global access to Apple’s 1.5 billion devices, [the] installed base that they have … [Apple CEO] Tim Cook, however, the thing he has done best by honestly managing is his relationship with Washington and his relationship with China. He has been masterful, the best CEO out there. And so I actually do not think this will get much traction. “
John Sculley, former CEO of Apple, sees explosive growth ahead for Apple.
“I’m looking at it in terms of what the things are that Apple can manage, and one of them is the great technology they have now with their vertical integration into the iPhone. The iPhone goes into the decades of In fact, if you look at the microprocessor technology that Apple has invested in, some people have rumored that by 2030 the iPhone – and I think it’s still going to be a major part of Apple’s business in 2030 – that it’s a billion times more powerful than the original iPhone that Steve Jobs introduced.Think about what that means for services, the kinds of things you can do, think about when 5G will be fully deployed in the world.That Apple’s have a great runway for them. It is perhaps the most competent company in the world in terms of its ability to perform operations, to perform. “
Jim Suva, senior tech analyst at Citi, says it is not a positive, but he does not see too much disadvantage.
“It’s not the first lawsuit, we expect more to go. Typically, lawsuit is not a good thing. But, as we see it, Apple has just innovated – left, right and center. They can continue to innovate during the recession,” they keep coming out with new products, they keep going in new markets like health care. We love the supply, we have a buy rating on it. This is a bit of a distraction. It’s not a positive, but just put, it is not the first time we’ve seen this too. “
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