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.