Apple’s EU App Store Reset Lifts Shares as Corning Feels Product-Cancellation Fallout

Apple and Corning Diverge as Two Apple Decisions Reshape the Market

Apple (AAPL) gained about 2% Wednesday after announcing a restructuring of its business terms for app developers in the European Union. The changes, which take effect Oct. 1, replace the Core Technology Fee with a 5% commission on digital transactions for apps distributed outside the App Store and move EU developers to a single set of business terms.

The positive reaction in Apple stock contrasted sharply with Corning (GLW), which fell about 4%. Corning remained under pressure following reports that Apple scrapped a planned all-glass 20th-anniversary iPhone that had been viewed as a significant future revenue opportunity for the specialty-glass maker.

Key Points

• Apple gained about 2% after announcing new EU App Store business terms designed to resolve disagreements with the European Commission over business terms and alternative distribution.
• The new EU structure replaces the Core Technology Fee with a 5% commission on digital transactions in apps distributed outside the App Store and changes commission rates across other payment methods.
• Corning fell about 4% as the reported cancellation of Apple’s planned all-glass 20th-anniversary iPhone added pressure to an already difficult post-earnings backdrop.

Apple Resets Its App Store Economics in Europe

Apple’s latest move addresses one of the regulatory issues surrounding its Services business.

Beginning Oct. 1, every developer distributing apps in the European Union will move to a single set of business terms. Apple said the changes follow collaboration with the European Commission and resolve disagreements over business terms and alternative app distribution.

One of the biggest changes involves apps distributed outside Apple’s App Store. The existing Core Technology Fee, which charges certain developers on a per-install basis, will be replaced by a Core Technology Commission equal to 5% of digital transactions.

Apple is also eliminating its initial acquisition fee and store services fee.

Commission structures within the App Store will change as well. Developers using Apple’s in-app purchase system will generally pay 26%, while qualifying developers in programs including the App Store Small Business Program will pay 15%.

Developers using alternative payment processing will generally pay 20%, with a reduced 10% rate for qualifying programs. Apps that direct customers outside the app to complete purchases will face a 15% commission, or 10% for qualifying developers.

The changes come as Apple’s Services business faces increased scrutiny. The company generated $30.7 billion in Services revenue during the June quarter, a record for the period but about $1 billion below what many Wall Street analysts had anticipated.

Third-party data cited in the source material also showed slowing App Store spending. Sensor Tower reported that U.S. consumer spending in the App Store declined 6% during the second quarter of 2026, compared with 9% growth a year earlier. Globally, consumer spending increased 3%, down from 13% growth in the comparable period.

Why Is Apple Stock Rising?

Apple shares rose roughly 2% as investors responded to the changes in Europe and a fresh analyst upgrade that focused on the company’s potential role in distributing artificial intelligence to consumers.

Rothschild & Co Redburn analyst Timm Schulze-Melander upgraded Apple to Buy from Neutral on Aug. 17 and increased his price target to $400 from $260.

The analyst’s argument centers on Apple’s ability to distribute AI capabilities through its ecosystem rather than competing directly with technology companies making massive investments to develop leading AI models.

Apple Intelligence currently relies on Alphabet-owned Google’s Gemini technology and runs on Nvidia chips in the Google cloud. That approach has allowed Apple to use externally developed AI capabilities while keeping its own AI spending more restrained than several large technology peers.

The distribution opportunity rests partly on Apple’s installed base of 2.55 billion devices. The analyst also expects the company’s upcoming foldable iPhone to support hardware demand, projecting sales of 14 million foldable devices in fiscal 2027 with only about a 2% cannibalization impact on traditional iPhones.

At the same time, Services remains an important part of the Apple story, making changes to App Store economics significant. Apple itself has warned in regulatory filings that it “may not earn a commission at all” when customers use payment systems outside the App Store.

The new European terms therefore arrive as Apple attempts to balance regulatory compliance, developer access to alternative payments and the economics of its App Store business.

Why Is Corning Falling While Apple Rises?

The divergence between Apple and Corning reflects a separate Apple-related development.

Corning shares fell roughly 4% Wednesday as investors continued to react to Apple’s reported decision to cancel its planned all-glass 20th-anniversary iPhone.

According to the supplied information, a Jefferies supply-chain analysis on Aug. 10 said Apple abandoned the device because of poor production yields. The model had originally been planned for a September 2027 launch and was viewed as a potentially significant future revenue opportunity for Corning.

The cancellation adds another concern for Corning following its second-quarter results.

Corning reported quarterly sales of $4.51 billion, below Wall Street expectations. Third-quarter revenue guidance of $4.95 billion also came in below the $5.04 billion analysts had anticipated, even though adjusted earnings per share of $0.78 exceeded estimates.

Several analysts subsequently reduced their price targets, with JPMorgan lowering its target to $170 and Oppenheimer cutting its target to $200.

That combination leaves Corning facing both company-specific and customer-related pressure: softer-than-expected revenue guidance following its latest earnings report and the loss of a potential future opportunity connected to Apple’s canceled all-glass iPhone.

What It Means for Investors

Wednesday’s price action highlights how decisions made inside Apple can produce very different consequences across its broader ecosystem.

For Apple, the European App Store changes address a regulatory dispute while establishing a new commission structure for alternative app distribution and payments. Investors are also weighing the company’s Services performance against a developing AI strategy built partly around external technology and Apple’s large installed base.

The regulatory issue is particularly important because Services generated $30.7 billion during the June quarter, even as that figure came in below Wall Street expectations. Meanwhile, outside data indicate that App Store spending growth has slowed.

For Corning, the connection to Apple is different. The reported cancellation of the all-glass anniversary iPhone removes a product that had been viewed as a significant future opportunity for the specialty-glass company.

That development comes as Corning is already working through a revenue miss and third-quarter guidance that fell short of analyst expectations.

The contrast in AAPL and GLW stock therefore reflects two distinct market signals. Apple is benefiting from steps to address uncertainty surrounding its App Store business, while Corning is absorbing the consequences of a canceled Apple hardware project alongside its own recent earnings concerns.

Conclusion

Apple’s latest company news shows how the iPhone maker is reshaping different parts of its business at the same time.

In Europe, Apple is simplifying App Store terms and changing commissions as it seeks to resolve disagreements with the European Commission. Those changes take effect Oct. 1 and arrive as investors scrutinize the durability of Services growth.

At the same time, expectations around Apple’s AI strategy have received support from an analyst upgrade based on the company’s potential role as a distributor of consumer AI through its 2.55 billion-device installed base.

For Corning, however, an Apple product decision has created a different market reaction. The reported cancellation of the all-glass 20th-anniversary iPhone has removed a potential future revenue opportunity at a time when Corning is already dealing with weaker-than-expected sales and revenue guidance.

The resulting divergence — Apple higher and Corning lower — shows how changes inside one of the world’s largest consumer technology ecosystems can produce sharply different outcomes for the companies connected to it.

FAQs

Why is Apple stock rising?

Apple stock gained about 2% after the company announced new EU App Store business terms designed to resolve disagreements with the European Commission. A recent Rothschild & Co Redburn upgrade, which raised Apple to Buy from Neutral with a $400 price target, also contributed to the positive backdrop.

What is Apple changing in the European Union?

Beginning Oct. 1, Apple will move EU developers to a single set of business terms. The Core Technology Fee will be replaced by a 5% commission on digital transactions in apps distributed outside the App Store, while commission rates for App Store purchases and alternative payment methods will also change.

Why is Corning stock falling?

Corning stock fell about 4% as investors continued to react to Apple’s reported cancellation of an all-glass 20th-anniversary iPhone. The device had been viewed as a significant future revenue opportunity for Corning, and its cancellation added to concerns following Corning’s recent revenue miss and softer-than-expected guidance.

What happened to Apple’s planned all-glass iPhone?

According to a Jefferies supply-chain analysis cited in the supplied information, Apple scrapped the all-glass 20th-anniversary iPhone because of poor production yields. The device had originally been planned for a September 2027 launch.

What is happening with Apple’s Services business?

Apple generated a June-quarter Services revenue record of $30.7 billion, but that was about $1 billion below what many Wall Street analysts had expected. Third-party data also indicated slower App Store spending growth, while legal and regulatory changes are affecting Apple’s commission model.

This article was created with AI assistance and reviewed by an editor. For details, please refer to our Terms of Use.

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