Chinese smartphone manufacturer Huawei is reportedly considering implementing in-app purchase fees on its operating system.
This information comes from a Bloomberg News report on Tuesday (June 18), which suggests that the move signals Huawei’s growing confidence as it challenges Apple in the world’s largest smartphone market.
According to sources familiar with the situation, Huawei is contemplating a commission rate lower than the standard 30% charged by Apple and Google for mobile store payments. To date, Huawei has offered its Harmony operating system for free to attract developers and publishers.
These sources indicate that Huawei has discussed a 20% fee for games, which constitute the majority of its app store revenue. The report noted that this fee is considerably lower than the 50% charged by competing Android store operators in China.
A Huawei spokesperson told Bloomberg that the company is not discussing a 20% fee for developers but did not provide additional details.
This apparent move comes during a year when Apple has experienced fluctuating fortunes in China.
Apple’s iPhone sales increased last month following a series of sales and declines in China, with the company participating in the country’s June 18 shopping festival. Apple is seeking to regain its footing amid competition from Huawei and other local smartphone manufacturers.
During Apple’s quarterly earnings call last month, CEO Tim Cook stated that iPhone sales in China had risen in the previous quarter.
“We still saw growth in the iPhone in some markets, including mainland China,” Cook said, as sales in the massive China market declined by 8% from the previous year.
In response to analysts’ questions about China, Cook said, “What we saw was an acceleration from Q1, driven by the iPhone. Other products didn’t perform as well, so we clearly have work to do there. I believe it has been and continues to be the most competitive market in the world during the last quarter.”
Meanwhile, Apple’s app store continues to face scrutiny from regulators, including in Europe. Last week, reports surfaced that the European Commission was set to charge Apple for not complying with a rule requiring it to allow app developers to inform users of offers available outside of Apple’s App Store without charging them fees.
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