Apple Speaks With Policymakers on App Store, CEO Recounts

Apple is “very, very focused" on discussing the privacy and security elements of the App Store with regulators and legislators, said CEO Tim Cook, responding to a question Thursday from Morgan Stanley's Katy Huberty on how Apple will balance consumer preference for App Store transactions with legislators’ push for more choice. The analyst cited a Morgan Stanley survey of 4,000 consumers showing most customers don’t want to pay for apps directly to developers because they value the security and privacy of transactions within the App Store. Apple is working “to explain the decisions that we've made that are key to keeping the privacy and security there, which is to not have sideloading" or to open the iPhone to unreviewed apps, which would sidestep privacy restrictions Apple put on the App Store, Cook said. Morgan Stanley didn't provide a copy of its survey Friday. Meanwhile, for the holiday season, Apple faces chip shortages and high demand across product lines, Cook told a quarterly call for the three months ended Sept. 25. See Q4 materials here.