Apple's services business is starting to feel the pain from losing its grip on App Store payments
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Bottom line: Apple's services business is starting to feel the effects of rules that allow app developers to send iPhone users to payment systems outside the App Store. The changes are beginning to slow App Store spending and weaken the commission model that has helped make services one of Apple's most profitable businesses.
The Cupertino company reported $30.7 billion in services revenue for the June quarter, a record but below analysts' expectations of $31.4 billion. Gross margin for the division was 75.6%, also below forecasts, according to Visible Alpha. Apple shares fell about 9% in the days after the results.
Chief Financial Officer Kevan Parekh said recent App Store changes contributed to the weaker performance, along with foreign exchange effects. Apple also warned in regulatory filings that it "may not earn a commission...
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