For the first time Apple is admitting and warning shareholders on record that the loss of the App Store due to regulatory pressure will have consequences that could translate to "material" financial risk in a sum that could potentially run into billions of dollars.

The iPhone maker’s latest annual report, published on Friday, is peppered with new warnings and disclosures about the legal risks rising up around its business in a marked change from last year’s filing, as it was forced to acknowledge the growing political hostility against big tech companies.

Most notable is its reference to the potential "material" hit to its App Store commissions should it lose the growing legal challenges against its model. Apple takes a 30 per cent cut of most digital purchases through the App Store, falling to 15 per cent for some subscriptions, which it says reflects the costs of curating and securing the marketplace, and improving its developer tools.

“If the rate of the commission that [Apple] retains on [App Store] sales is reduced, or if it is otherwise narrowed in scope or eliminated, the company’s financial condition and operating results could be materially adversely affected,” Apple wrote.

This year, Apple has been hit with a lawsuit from Fortnite maker Epic Games and an antitrust investigation from the European Commission into its App Store rules, as well as the threat of a similar case from the US Department of Justice.

Apple’s responses to Epic’s lawsuit have warned that it could "threaten the entire App Store ecosystem" but the iPhone maker has not given any indication of the potential cost should it lose its various legal battles. For more, read the full Financial Times report.