Things are already changing around Apple’s App store, and more will change with app stores broadly in the next few years. For Apple, their changes as of late are what many have referred to as “self-regulation.” Nevertheless, even if minor, Apple has made some concessions to start addressing some of the antitrust concerns surrounding the app store.
I firmly believe Apple has several more changes ahead for App Store that they will initiate whether legal regulation forces them to or not. But as I have mentioned before, none of these changes, even in a worst-case scenario, will impact Apple in any significant way. This is why I have consistently argued that making these changes for the better of the ecosystem, both now and in the future, is worth more than the small amounts of money they get or will lose from making changes to the App Store.
To summarize the economics again, Apple makes roughly ~$15-17b from their commission on App Store a year. That is roughly two weeks of iPhone sales in an average quarter. Apple makes two times as much total App Store revenue as Google, which likely means Apple’s commission is 2x that of Google.
Apple makes most, the vast majority, of their App Store commission from games. Several detailed financial analyst models approximate the percentage of commission Apple gets from games is ~60%. This suggests the only major threat to Apple’s commission revenue is if most game developers successfully bypass Apple’s IAP. At best, this is a long shot, given that IAP is a key reason for the lack of friction inside games that makes most microtransactions happen. And, even if an alternate in-app payment option was allowed to be offered, most normal consumers are unlikely to trust random game developers more than Apple. There are certainly a few game developers who could pull it off but certainly not most of them.
The foremost challenge I see is that as developers begin to exercise some freedoms to attempt to get users outside of Apple’s ecosystem to make a purchase, or try and onboard them in the app with a user account, enter credit card data, etc., all it will do is dramatically hurt the user experience for Apple customers. This is certainly true with purchasing a Kindle book via the Kindle app on iOS or signing up with Spotify, Netflix, etc., where you have to leave the app, sign up and transact, then go back to the app. All of these experiences are loaded with friction, and can you imagine a scenario where every app is free, but then the developer makes you jump through all these hoops to use it after you download it? The app experience would be miserable, but that is a likely road we could head down.
So what is the solution? Honestly, Apple needs to lower their commission to 10% for small developer businesses and 15% for everyone else. Apple needs to make it a no-brainer to use its IAP to collect transactions. The ONLY negative to lowering the rate is they would half their revenue on commissions. But, via regulation or self-regulation, they will lose money anyway at the potential cost of vastly injuring the customer experience with apps.
The positives dramatically outweigh the negatives here to just lower the commission to a rate that makes it a no-brainer for nearly everyone, including even someone like Netflix or Spotify, to embrace if they feel they can make more money by lowering friction to conversions.
But there is another angle I’m interested in. If Apple does, that is a huge positive if it plays out. If Apple dropped their rate down from 30% to 15%, it is reasonable that Google would have to as well. And what if not just Google felt pressured, but all the video game app stores got pressured? That may be a harder point to argue. Still, if Apple’s devices became more attractive as a platform for AAA game developers to embrace then, it would pressure console and PC distribution platforms to lower their rates as well. And if console makers really do operate at a loss, then a drop from 30% to 15% in-game commission could be quite devastating to their businesses. I am well aware this point on the AAA games is more broadly a less likely scenario, but I make it because Apple’s 30% commission was reasonable. After all, it was the standard for all game stores. If Apple lowers its rate, you could argue competitive and/or regulatory pressure could force all app/game marketplaces to do the same. At large, this would have some dramatic impacts competitively.
Lastly, while I advocate dropping the rate, which has both pro-ecosystem and pro-competition benefits, I still maintain Apple has App review processes that need to be refined. However, it does seem there are positive moves in this direction. Still, Apple’s success in some future platforms like AR/VR is dependent on the third-party developer goodwill they have had that is certainly being impacted at this moment. In my opinion, Apple can easily get this back and continue to modify and refine the App Review process in a way that gives developers confidence. Apple views them as partners may be the most important thing related to App Store Apple can do for its future.
4d Lotto – Join lotto 4d and bet 4d online with ease! We offer all popular 4D betting in Malaysia such as 9 Lotto, Sports Toto, Magnum, Damacai, GD Lotto, STC4D, Sabah88, Sarawak Cash Sweep betting online anywhere anytime. Buy 4d online Now!
Hello there, just was aware of your weblog via Google, and located that it’s truly informative. I am going to watch out for brussels. I抣l appreciate for those who proceed this in future. A lot of other people might be benefited out of your writing. Cheers!
Medicine information. Cautions.cheap lisinopril pill in USEverything what you want to know about meds. Get here.
Rashida,Allopathy– if we must call it that– was never founded by a single person. I am thus not sure what you are talking about when you say it was founded by a barber who burned down so many libraries! Indeed, we do have the works of traditional doctors like Galen and Hippocrates still available, so the barber must not have done a good job.Allopathic pharmacology is based on a thorough knowledge of organic chemistry. It was given to us by any one individual. So there is no conspiracy here.In the past, barbers were surgeons. Physicians used to ask barbers to perform surgeries since they were not skilled enough to wield knives and other such instruments. Thankfully, we train surgeons today.Conspiracy theories and mistrust of modern medicine like you have shown is problematic and prevents many people from getting the care that they need.
hey there and thank you for your info – I’ve definitelypicked up something new from right here. I did however expertise some technical issues usingthis web site, since I experienced to reload the website lots of times previous to I could get it to load correctly.I had been wondering if your hosting is OK? Not that I am complaining,but sluggish loading instances times will sometimes affect your placement in google and could damage yourquality score if advertising and marketing with Adwords.Well I am adding this RSS to my e-mail and could look out for much more of your respective intriguing content.Ensure that you update this again very soon.
Hi there, i read your blog occasionally and i own a similar one and i was just curious if you get a lot of spam responses? If so how do you prevent it, any plugin or anything you can recommend? I get so much lately it’s driving me crazy so any assistance is very much appreciated.
Nevertheless, the complimentary symbols should not created in one go.As we now have talked about our main purpose is to earn amost safe chaturbate hack.
Aplikasi 4d Lotto online terpercaya. http://www.4dlotto.cc
Aw, this was a really good post. Taking the time andactual effort to generate a great article… but what can I say… Ihesitate a lot and never seem to get anything done.
4d Lotto Online Trusted Site. Proven more than 15 Years.
Keep up the good work, I read few posts on this website and I believe that your web blog is real interesting and has got circles of fantastic info .
WOuyQFASb
eTBvsKtuyxQ
LQwKemqO
Диапазон частот: от 0,15 до 30 МГц
Your writing style is engaging, and the information is presented clearly. Thanks for this informative piece!
Interesting blog! Is your theme custom made or did you download it from somewhere? A theme like yours with a few simple adjustements would really make my blog stand out. Please let me know where you got your theme. Cheers
Your house is valueble for me. Thanks!?
Hi there just wanted to give you a quick heads up. The text in your content seem to be running off the screen in Opera. I’m not sure if this is a formatting issue or something to do with web browser compatibility but I figured I’d post to let you know. The layout look great though! Hope you get the issue solved soon. Many thanks
I’m not sure exactly why but this site is loading
incredibly slow for me. Is anyone else having this issue
or is it a issue on my end? I’ll check back later on and see if the problem still exists.
I have really learned result-oriented things through the blog post. Yet another thing to I have recognized is that in many instances, FSBO sellers may reject anyone. Remember, they might prefer not to ever use your solutions. But if a person maintain a gentle, professional relationship, offering aid and remaining in contact for around four to five weeks, you will usually be capable of win interviews. From there, a house listing follows. Thank you
There is some nice and utilitarian information on this site.
Hi there I am so thrilled I found your website, I really found you by mistake, while I was browsing on Yahoo for something else, Anyhow I am here now and would just like to say thanks a lot for a tremendous post and a all round exciting blog (I also love the theme/design), I don’t have time to go through it all at the minute but I have saved it and also added in your RSS feeds, so when I have time I will be back to read more, Please do keep up the awesome job.
I really like it when people get together and share ideas.
Great blog, continue the good work!
cake delta 8 carts disposable
of course like your website but you have to check the spelling on quite a few of your posts. Many of them are rife with spelling problems and I find it very bothersome to tell the truth nevertheless I’ll certainly come back again.
Nice post. I learn something more challenging on different blogs everyday. It will always be stimulating to read content from other writers and practice a little something from their store. I’d prefer to use some with the content on my blog whether you don’t mind. Natually I’ll give you a link on your web blog. Thanks for sharing.
Your writing style is engaging, and the information is presented clearly. Thanks for this informative piece!
Fantastic article! The information you provide is important. Thank you for sharing!
A unique aspect of this site is its matchmaking algorithm that pairs you with models based
Thank you for great information. I look forward to the continuation.
We’re a group of volunteers and starting a new scheme in our community. Your website offered us with valuable information to work on. You have done a formidable job and our entire community will be grateful to you.
Fantastic article! The information you provide is important. Thank you for sharing!
There is definately a lot to find out about this subject. I like all the points you made
Thanks for this howling post, I am glad I detected this internet site on yahoo.
I love it when people come together and share opinions, great blog, keep it up.
Loving the information on this site, you have done outstanding job on the posts.
I just like the helpful information you provide in your articles
More?
hello there and thank you on your information – I have definitely picked up anything new from right here. I did alternatively expertise some technical issues using this website, since I experienced to reload the web site a lot of instances previous to I could get it to load properly. I have been puzzling over if your hosting is OK? Now not that I’m complaining, but slow loading cases instances will often have an effect on your placement in google and can damage your high-quality ranking if ads and ***********|advertising|advertising|advertising and *********** with Adwords. Well I am adding this RSS to my e-mail and can look out for much extra of your respective exciting content. Make sure you replace this once more soon..
It’s actually a great and useful piece of information. I am glad that you shared this useful info with us. Please keep us informed like this. Thanks for sharing.
Hiya, I am really glad I’ve found this info. Nowadays bloggers publish only about gossips and web and this is actually frustrating. A good web site with interesting content, that’s what I need. Thanks for keeping this web-site, I’ll be visiting it. Do you do newsletters? Can’t find it.
Hey there! This post couldn’t be written any better! Reading through this post reminds me of my good old room mate! He always kept chatting about this. I will forward this article to him. Pretty sure he will have a good read. Many thanks for sharing!
I am impressed with this internet site, rattling I am a fan.
I’ll right away grab your rss feed as I can’t find your email subscription link or e-newsletter service. Do you have any? Please let me know so that I could subscribe. Thanks.
Hi there! This post couldn’t be written any better! Reading through this post reminds me of my previous room mate! He always kept talking about this. I will forward this article to him. Pretty sure he will have a good read. Thank you for sharing!
I have been browsing online greater than three hours today, yet I by no means found any fascinating article like yours. It’s beautiful worth sufficient for me. Personally, if all website owners and bloggers made just right content as you did, the internet can be a lot more helpful than ever before.
I think other website proprietors should take this website as an model, very clean and excellent user genial style and design, as well as the content. You’re an expert in this topic!
Excellent post however , I was wondering if you could write a litte more on this topic? I’d be very grateful if you could elaborate a little bit more. Appreciate it!
Some really fantastic blog posts on this web site, regards for contribution. “Once, power was considered a masculine attribute. In fact, power has no sex.” by Katharine Graham.