Apple Dodges Class Action as Services Revenue Surpasses $100 Billion Milestone

Apple Inc. sidestepped a potentially massive legal battle after a U.S. judge overturned a prior ruling that WOULD have allowed millions of iPhone users to collectively sue the tech giant over its App Store practices. The reversal comes as Apple's services division crosses the $100 billion annual revenue threshold for the first time.

The services segment—encompassing iCloud, Apple Pay, and AppleCare—is projected to report $108.6 billion in fiscal year revenue, marking a 13% year-over-year increase. This now accounts for a quarter of Apple's total revenue and contributes up to half of its profits, buoyed by high-margin, recurring income streams.

The dismissed lawsuit, originating in 2011, alleged Apple's App Store monopoly forced users to pay inflated prices for apps and in-app purchases. Developers claimed the 30% commission structure left them no choice but to pass costs to consumers. Judge Yvonne Gonzalez Rogers' 2024 decision to certify the class action had set the stage for a landmark challenge to Apple's walled-garden ecosystem.