Apple can absolutely afford to do this financially, but the 70/30 split is practically the only thing that hasn't changed in the App Store since it launched. So why don't they?
A few possibilities:
- They have a similar split with music labels, so giving more to developers could hurt their music industry relationships
- They have more interest in helping the big app companies like Supercell, simply because of the revenues and brands they create
- They don't want to give additional incentives to creators of crappy apps who never make much money anyway
Whatever Apple's reasons, they haven't changed iTunes music revenue splits in over a decade. So I don't expect them to update developer splits anytime soon either.
> Apple can absolutely afford to do this financially, but the 70/30 split is practically the only thing that hasn't changed in the App Store since it launched. So why don't they?
You missed the "They are making bank and don't see any need to change the payment structure" possibility.
Because it's not like fuel. Most people have a fairly inelastic demand for fuel. You kinda have to drive to work. You really don't need apps, and no one needs to make the apps. Running sales can increase consumer demand. Increasing the profit margins for developers could increase supply of quality apps, thereby increasing net revenues for Apple on a smaller cut of the pie. I rather like the current system for it's simplicity and while of course I'd like them to charge less I think their cut is reasonable.
There's certainly a tipping point though. Having the store flooded with more low quality apps doesn't help them, and they seem to be doing pretty well currently.
well even if they take 50% cut, developers are not going anywhere else. So, the equation is more like whatever cut apple takes = more developers =...= more revenue
Apple can absolutely afford to do this financially, but the 70/30 split is practically the only thing that hasn't changed in the App Store since it launched. So why don't they?
A few possibilities:
- They have a similar split with music labels, so giving more to developers could hurt their music industry relationships
- They have more interest in helping the big app companies like Supercell, simply because of the revenues and brands they create
- They don't want to give additional incentives to creators of crappy apps who never make much money anyway
Whatever Apple's reasons, they haven't changed iTunes music revenue splits in over a decade. So I don't expect them to update developer splits anytime soon either.