This week, almost everything revolved around figures set by someone else. A court in California forced Apple to disclose a specific commission for the first time. At the same time, reports from the supply chain revealed the sharp rise in costs for the next iPhone. And in Germany, the very announcement that had been expected on Monday failed to materialize.
Between August 10th and 16th, the week unfolded on two fronts. On the one hand, there was a court case in which Apple had to disclose what the company intends to charge for purchases outside the App Store. On the other hand, the supply chain reports continued to converge, all pointing toward the same conclusion for weeks: storage and displays are becoming more expensive, and eventually, that will be reflected in the price tag.
In between, there was a warning to users in 110 countries, two personnel changes in Apple's leadership, and an AI model that Apple built for China but not for Europe. The beta cycle continued alongside this – iOS 27 reached Beta 5 on Monday, marking the second half of its testing phase.
🔥 Story of the week: Apple tells the court 15 percent – and at the same time calculates zero
On Tuesday, the federal court in Northern California ordered Apple to submit its future fee structure without further delay. It was submitted on Thursday. Apple proposes a 15 percent commission for purchases outside the app, 10 percent for partner programs and subscription renewals, and 5 percent for participants in the Small Business Program.
The remarkable part is a few pages later. In the same document, Apple calculates that the cost benchmark set by the appeals court would, mathematically speaking, amount to zero percent. Of approximately 40,000 intellectual property rights, only 14 are directly involved in payment processing.
In Europe, the calculation is different. Those who use the external purchase option here pay a tiered rate of 2 percent for initial acquisition, 5 or 13 percent for store services, and a 5 percent core technology commission – totaling 10 to 20 percent. The standard rate is therefore 20 percent, compared to the 15 percent Apple offers in the US.
In addition, there's a condition not included in the US proposal: Anyone in the EU who refers users to external payment methods is prohibited from offering in-app purchases within the same app. In practice, this has little impact. The German Spotify app currently only displays a non-clickable text box indicating that Premium cannot be subscribed to here – no system dialog appears because Apple's fees only apply when a clickable link is present.
📰 What Else Mattered
The anticipated iPhone price increase failed to materialize. Rumors pointed to August 10th and the iPhone 17 series, but didn't specify a market – a widespread adjustment of list prices was expected, coupled with a supposedly 15 to 30 percent reduction in production. Five days later, none of this has come to pass: In the German store, the 256GB models still cost €699 for the iPhone 17e, €949 for the iPhone 17, €1,299 for the iPhone 17 Pro, and €1,449 for the Pro Max, and no changes have been reported from other regions either. The price pressure thus shifts to the next generation in September.
Apple has warned users in 110 countries about mercenary spyware. Since 2021, these warnings have spread to over 150 countries. The notification is delivered via the lock screen, settings, email, and a banner in the account – so those affected can hardly miss it.
The memory development continued. Apple is testing memory from the Chinese manufacturer CXMT for iPhone and MacBook, while at the same time there are doubts about the reported processor bottleneck at TSMC and reports that Apple is buying OLED panels in advance before prices rise further.
Two changes at the top. Jennifer Bailey is leaving Apple in October, relinquishing responsibility for Apple Pay. Shortly afterward, it was announced that Apple has hired a new head of government relations.
Back to School is also running in Germany, Austria, and Switzerland (DACH region). Students and teachers receive up to €120 in credit when they purchase a Mac or iPad.
Two classics have been dropped from the list. Apple now considers the iPhone X and MacBook Pro 2018 obsolete, meaning spare parts and service are no longer available.
💡 Rumor of the week: The anniversary model is supposed to be made of glass after all
Within a few days, two conflicting accounts emerged. First, a supply chain audit suggested that Apple had scrapped the largely glass casing for the iPhone 20 due to low production yields. Shortly afterward, Bloomberg reported that the project was continuing unchanged – only an earlier design had been scrapped.
According to this description, the front and back will consist of curved glass and be connected by a central metal band. The original design, with an almost entirely glass body, failed because the two glass surfaces could not be reliably joined in large quantities. The case design is therefore considered largely finalized, and the model is expected in autumn 2027.
Both pieces of information are presented side by side, and that's more revealing than who ultimately proves right. Supply chain analyses read order quantities and yields but don't see design decisions. Reports from within Apple describe the roadmap but sometimes underestimate what can cause a roadmap to fail. It's quite possible that both sides have described something correct: a discarded concept and a project that continues.
📊 Number of the week: 38 percent
The material costs of the iPhone 18 Pro are expected to increase significantly compared to its predecessor. This estimate is based on an analysis of the bill of materials and primarily concerns the memory, display, and processor.
Material costs are not the selling price – Apple adds margin, development, logistics, and marketing on top and has absorbed cost increases in the past. However, a 38 percent markup on the purchasing side is difficult to fully offset when it affects the three most expensive components simultaneously.
👎 Flop of the week: Germany, Austria, and Switzerland could be left behind for months when it comes to the iPhone Ultra
According to a report marked as exclusive, Apple's foldable model will be unveiled in September, but initially only sold in the US. Other markets, including China, are expected to follow over a period of two to three months. The reasons cited include supply bottlenecks, unresolved pricing issues, and testing problems with already manufactured devices.
None of this has been confirmed. The report is based on information from Australian network operators and a retailer, focusing on distribution rather than manufacturing. Apple has primarily used staggered launches for new product categories – the Vision Pro took five months to become available in Germany, with Austria and Switzerland following even later.
If this is true, two things will happen for Germany, Austria, and Switzerland (DACH region): the most expensive iPhone in the series and an additional waiting period. Protective films with asymmetrical corners, from which the camera position can be determined, suggest that production has started – so the issue isn't manufacturing, but distribution. Everything else is covered in the rumor mill surrounding the iPhone Ultra.
🔭 What's Coming Next Week
The beta cycle continues: Following Beta 5 last Monday, iOS 27 Beta 6 is due, usually released every two weeks. On Monday, August 17th, confirmations from Apple's lottery for store visits to the September event are also expected to be sent out – a reliable indication that the official invitations will follow in the last week of August.
The more important date is Friday, August 21. That's the deadline by which Tim Cook is supposed to answer questions from the US Senate regarding the use of Chinese memory chips. His answer will likely be a key factor in determining whether CXMT can even play a role as a supplier.
💬 My Take
The most revealing news of the week wasn't the one with the biggest number. Apple, together with Alibaba, has trained its own speech model for China, making it the first foreign company with its own registered AI in that market. In June, Apple mentioned China and the EU in the same breath as the two regions without Siri AI. Two months later, one of those barriers has been lifted.
The difference lies in the effort Apple is willing to invest. A separate model was developed for China, navigated through an approval process, and integrated with a local partner. For the EU, Apple is waiting and citing regulatory uncertainty.
It's understandable – the Chinese market is larger for Apple, and while the regulations there are strict, they are clearly defined. Nevertheless, I expect this prioritization to backfire. If a company demonstrates in one market that a proprietary solution is feasible within a few months, it's difficult to argue in another that it's technically impossible.
📚 From Our Archive
Because Apple warned users in 110 countries this week, it's worth taking a look at how commercial spyware actually works on the iPhone and what protection mechanisms Apple offers against it.
And because the gap between China and Europe has widened further this week, here is the current status of which Apple features are still missing in the EU – including Switzerland, which as a non-EU country is excluded from some of these restrictions.
At the end of this week, we're left with a company that fights for every percentage point in California, delivers at record speed in Beijing, and waits in Brussels. What's your take on this? Do you accept that Europe lags behind in features like Siri AI as long as the regulations here are stricter, or is that now a reason to take a second look at your next device? Tell us in the comments where you draw the line.
Until next Sunday, Apfelpatient wishes you a relaxing read and a good start to the week.
