Consumer electronics giant Apple (AAPL) has lowered the commission rate it charges on its App Store in China as the company faces continued pressure from Chinese authorities.
In a statement, Apple said it is reducing the cut it takes from Chinese app developers for App Store transactions and in-app purchases to 25% from 30%.
For smaller developers in China, the rate is being dropped to 12% from 15%. The move follows talks with Chinese regulators, said the company.
Apple has long tried to reduce the political risks of operating in China while retaining access to the country’s massive consumer market.
Last spring, a Chinese regulator held up Apple’s rollout of artificial-intelligence (A.I.) features in the country of 1.4 billion people.
Apple has also been impacted by U.S. tariffs on Chinese made goods as the majority of the company’s iPhones and other devices are made within China.
Consequently, Apple has moved much of its iPhone production to India from China since U.S. President Donald Trump returned to office.
Analysts say pressure on Apple is coming from both Beijing and Washington, D.C. as trade tensions remain elevated between China and the U.S.
AAPL stock has gained 22% over the past 12 months to trade at $255.76 U.S. per share.
Tech Insider
