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Elon Musk’s news of the day is his beef with Apple. He said the company threatened to kick Twitter out of the App Store. And now Elon vs. Apple has recently reviewed complaints from companies such as Meta and Spotify, saying that Apple demands a large share of revenue for sales on the App Store.
If you’re a developer, the most important place to be is Apple’s App Store. The problem is, it’s a bargain.
Apple takes a fee from everything, said Eric Seufert, an analyst with the website Mobile Dev Memo.
“They make money when you buy tokens at a game,” he said. “They make money when you buy a subscription to a creative application.”
That cut is between 15% and 30%, depending on several variables.
Apple gets a lot of attention because it is the leader of the app market. The App Store makes more than twice as much money as Google Play, according to research firm Sensor Tower. That’s because Americans prefer iPhones over Android. And unlike Apple, Google allows cell phone manufacturers like Samsung to create their own app stores.
“Apple is shutting out reasonable competitors, of course, in their built-in services,” said Daniel Hanley, a senior legal analyst at the Open Markets Institute.
Apple has been in some legal trouble, most notably with Epic Games, the creator of Fortnite. The judge’s decision – which is being appealed – made it clear that Apple did not violate antitrust law. And there are roots in the weeds. Some of them are a bit headstrong.
“It’s a creative conversation about what’s right and good for a market,” says Ben Bajarin, an analyst at Creative Strategies.
Apple said that it is not very different from a store like Walmart, which manages its products, decides where they will be placed on the shelves and earns money from the sale.
Bajarin’s team is always choosing Apple-related developers. And while the company faces criticism of its business model, developers are doing better.
“The challenge is how quickly something like this changes and has a business model to adapt around that,” he said. “They feel like Apple is listening to them.”
Congress is listening. He is considering legislation that would give app makers more control over how and how much they charge.
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