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Why does Apple make a minority of developers finance the entire App Store?

a year ago
  • #App Store
  • #Apple
  • #Developers
  • Apple announced a study showing the App Store facilitated $1.3 trillion in billings and sales in 2024, with over 90% of transactions not paying any commission to Apple.
  • Apple highlights its investment in developer tools and capabilities, yet most developers benefit without contributing financially.
  • Apple's 2019 statement criticized Spotify for not contributing to the App Store ecosystem, despite most apps also not paying commissions.
  • 84% of apps in the App Store pay nothing to Apple, a design choice for free apps, ad-supported apps, and those selling physical goods.
  • Apple charges commissions only for digital goods and services purchased via its In-App Purchase system, which applies to a minority of apps.
  • Apple's In-App Purchase mandate is controversial, as it forces some developers to finance the ecosystem while others benefit without contributing.
  • The App Store Small Business Program reduces commissions to 15% for developers earning less than $1 million annually, but its future is uncertain.
  • Apple's comparison of the App Store to retail stores is flawed, as most retail stores require payment for all products, unlike the App Store's free apps.
  • Apple finances its platforms primarily through hardware sales, not App Store commissions, making the IAP mandate seem unnecessary.
  • The iOS App Store's two main issues are 'double-dipping' on developers and forcing a minority to finance the ecosystem for the majority.