Get the latest tech news

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


Today, Apple announced a self-funded study titled Global App Store helps developers reach new heights, supporting $1.3 trillion in billings and sales in 2024, but what interested me more was the subtitle: For more than 90 percent of the billings and sales facilitated by the App Store ecosystem, developers did not pay any commission to Apple In the same announcement, Apple brags at length about its "Investment in Developers": Apple invests in tools and capabilities that make it easier for developers to distribute their apps and games, be discovered by users around the globe, and grow successful businesses. When you put these two claims together, it follows logically that most of the billings and sales facilitated by the App Store ecosystem take advantage of Apple's investment without paying any commission to Apple.

Apple invests in tools and capabilities that make it easier for developers to distribute their apps and games, be discovered by users around the globe, and grow successful businesses. In terms of structural relief, under the Settlement, Apple has agreed to maintain the 15- percent commission tier for U.S. developers enrolled in the Small Business Program for at least three years after Final Approval. (2) The IAP mandate applies only to a small minority of developers, who are forced to (allegedly) support the ecosystem for the benefit of the majority, who are free riders.

Get the Android app

Or read this on Hacker News

Read more on:

Photo of Apple

Apple

Photo of App Store

App Store

Photo of developers

developers

Related news:

News photo

PlayStation Adds Apple Pay Support for PS4 and PS5 Store Purchases

News photo

Apple’s new ‘homeOS’ might debut next week at WWDC

News photo

Apple says 82% of compatible iPhones are running iOS 18