Some developers are pushing for Apple to reduce or even eliminate the App Store commission. Now the company has issued a warning to investors.
Since the launch of the App Store in 2008, Apple has charged developers and app providers a fee of 30 percent for every sale. This includes apps as well as in-app purchases. Over time, Apple has already responded by reducing the costs. This means that recurring subscriptions are only charged 15 percent from the second year onwards. However, most transactions are one-time purchases and not subscriptions. In light of the current situation, Apple has informed its investors that any reduction in this 30 percent App Store commission will have a significant impact on their revenue and thus the company's financial results. reported Bloomberg. According to the news channel, Apple sent the following message:
If the commission rate the Company retains on such sales is reduced or otherwise restricted or eliminated, the Company's financial condition and results of operations could be materially adversely affected.
The Cupertino-based company yesterday announced fourth-quarter 2020 results with revenue of $64.7 billion and profit of $12.67 billion.
App Store Commission: Is Apple Considering a Reduction?
The Services category itself recorded revenue of $14.55 billion, up from $12.5 billion in the same period last year. These numbers, of course, include App Store revenue. A few weeks ago, Fortnite was banned from the App Store after Epic Games released a new update that bypassed Apple's in-app purchase system to save on the 30 percent commission. Epic is now suing Apple, claiming the company is acting as a monopolist by forcing developers to pay App Store fees. Apple has also faced antitrust investigations by the House Judiciary Committee. Whether an update to the App Store commission will actually be made anytime soon remains to be seen. However, at this point, there is nothing to suggest such a plan. AirPods Pro on special offer at Amazon – available now. (Photo by nikkimeel / Bigstockphoto)
