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Why Gaming is so Profitable for Apple

Mobile Games

With world-class products like iPhones and iPads, Apple has grown into a global mega-company that is hugely profitable and powerful. It is now one of the most profitable companies in the world. In 2023, Apple’s revenue was more than $383 billion.

But the Apple Watch, AirPods and Apple services (like Apple Music, iCloud, and Apple TV+) have become significant growth areas too. In 2023, Apple’s services generated over $80 billion. The company now has a worldwide footprint. It sells products in over 100 countries. Apple has a massive supply chain that includes key manufacturing hubs like China and India. More controversial is the Apple’s way of using a closed system, like its software platforms (iOS, macOS, watchOS), iCloud integration, and services. 

This keeps users locked into its product lineup. It certainly promotes brand loyalty, with a high customer retention rate, the brand is one of the planet’s best-known and is associated with innovation, luxury, and quality.

Apple Arcade Catalog | +180 Games Available

How Online Gaming Benefits Apple

The rapid rise in remote gaming and online casinos is helping Apple expand rapidly too. Remote playing allows users to play high-quality games on their mobile devices, using the power of cloud platforms. The iPhone and iPad, with their powerful hardware and high-resolution displays, are well-suited for this. Demand for these devices has grown because of the rise of online playing. At the same time, Apple TV, equipped with Apple Arcade, can become a central gaming device for casual gamers who want to stream games in their living room.

Apple Arcade, Apple’s gaming subscription service is now offering a wide range of exclusive, ad-free games. The shift toward remote gaming has encouraged more users to explore game subscription services like Arcade. This has meant recurring subscription revenue for Apple and helps diversify the business away from simple hardware sales. Remote gaming services often require mobile apps from the App Store, increasing app downloads, in-app purchases, and service subscriptions. Gaming apps now constitute a significant portion of the App Store’s revenue. 

Apple’s ecosystem supports a variety of third-party gaming controllers, alongside its offerings. These include the Apple-compatible PlayStation and Xbox controllers. Inside the devices, Apple’s custom-built M1 and M2 chips in Macs and A-series chips in iPhones and iPads offer industry-leading performance. The huge growth of remote gaming allows Apple to showcase these capabilities. These chips deliver smooth gameplay, reduced latency, and impressive graphics processing. And in the future, Apple is positioned to capitalize on progress in remote gaming through augmented and virtual reality experiences. The potential future impact of the Apple Vision Pro headset means it could also play a key role in the emerging AR/VR gaming market.

Gambling Apps on the App Store

The Apple App Store offers casino and gambling apps – but with strict regulations to ensure compliance with local laws and user protection. Apple permits real money gambling apps, including those for online casinos, sports betting, poker, lotteries, and horse racing, only if they are completely legal in the region where they are offered. If a provider doesn’t have an app, it can be a red flag, the online casino reviews at Onlinecasino.co.nz are unlikely to be favorable for an operator that doesn’t have an app as it suggests a lack of funding and quality. Developers must have the necessary licensing and permissions to offer real-money gambling. For example, if an app offers real-money gambling in New Zealand, the developer must hold a valid gambling license, likely from the Malta Gaming Authority (MGA) or Kahnawake Gaming Commission.

These apps are often restricted to certain regions or countries where gambling is legal. Apple uses geo-blocking to prevent users in regions where gambling is illegal from accessing these apps. At the same time, gambling apps are limited to users above the legal gambling age in their region (typically 18 or 21), and Apple uses strict age verification measures. It’s a profitable area for Apple – as it takes a 30% commission on in-app purchases. 

Meanwhile, social casino games, which simulate gambling without real-money stakes, are widely available on the App Store. Players can purchase virtual chips or currency, but winnings cannot be redeemed for real money. In recent years, Apple has updated its policies to ensure compliance with international laws. Since 2019, Apple has required that gambling apps offering real-money play must be native iOS apps – not web-based or HTML5 apps given an Apple interface. Since then Apple has increased its scrutiny of gambling apps to prevent fraud and illegal activities, removing thousands of gambling-related apps that did not meet its guidelines.

The App Store continues to supply many gambling apps but with uses strict controls to ensure legal and ethical compliance. This benefits Apple, as they make yet more sales of course. Providers also benefit from the reputation and trust of appearing in the App Store. And it’s good for players too – Apple’s regulations ensure an app’s security, legality, and fairness.

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