Apple Secures Landmark Revenue-Sharing Deal With Tencent

Apple (AAPL) has taken a significant step toward strengthening its position in China after reaching a breakthrough agreement with Tencent (TCEHY) to process payments inside WeChat’s mini games and apps — the dominant digital ecosystem in the country.

Under the new arrangement, Apple will earn a 15% commission on digital purchases, a notable reduction from its standard 30% App Store fee.

Why This Deal Matters

Unlocks access to China’s largest app ecosystem — WeChat dominates Chinese digital life, making this a major win for Apple.
Resolves a long-running dispute between the companies over Tencent’s in-app payment system that let users bypass Apple’s infrastructure.
Creates a new revenue stream for Apple from millions of in-app purchases within WeChat mini games and applications.
Developers will now need to comply with Apple’s software rules and close previous payment loopholes.

Tencent Earnings Beat Expectations

The news comes on the same day Tencent posted earnings that beat Wall Street forecasts on both revenue and profit, further spotlighting the company’s strong momentum.

Broader Impact

This deal could influence how other major Chinese app ecosystems interact with Apple, potentially reshaping developer compliance and revenue-sharing structures across China’s mobile landscape.