Apple store community has recently changed its policies to help developers benefit from the situation by dropping its commission rate to 15%. Before cutting down their commission, Apple used to receive a 30 percent commission of in-app purchases and subscriptions. This policy is referred to by the company as a small-scale business program mainly to give an edge to the developers whose annual incomes are less than $1 Million. The company decided to take this huge step to preserve its assets, especially after coming across Anti allegations made by some of the application developers.
The following chart compares the consumer spending on both Apple’s App Store and Google Play. Despite the 15% cut down in the cut-down, it is estimated that the average proportion of revenue received by each of these application developers will be considered small. The chart shows the percentage of consumer spending on App store applications and Googe Play applications, and it is evident that in the year 2019 as well as 2020, Appstore saw greater consumer spending than Google Play. However, the new policy attained by the company has shown very little revenue growth.
The revenue generated by the App store in the recent year was $70 billion, in which the commission was calculated to be $20 billion, and as per the company, this amount makes negligible a difference in the total asset of the company. The reason why the App store has come to this conclusion is that third-party app makers such as Spotify have become a competition to the company in terms of how much commission to be drawn out from the app-sales.
Infographic by: Statista.com