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It costs money to charge users credit cards. If your app is $1, and you were handling the credit cards yourself, that could easily be $0.30 (and increases for h

It costs money to charge users credit cards. If your app is $1, and you were handling the credit cards yourself, that could easily be $0.30 (and increases for higher prices). Apple gets better pricing than that obviously.. but they also have to maintain the servers that handle/store the credit card data, etc. And they have to review your app.. which has a real labor cost. If your app is $50, I could understand the outrage over the price.. but most apps are a dollar or two, and sell little to nothing.. the profits on that have to be insignificant or nonexistent.

AnthonyMouse 10y ago
> It costs money to charge users credit cards. If your app is $1, and you were handling the credit cards yourself, that could easily be $0.30 (and increases for higher prices). Apple gets better pricing than that obviously.. but they also have to maintain the servers that handle/store the credit card data, etc. Credit card processors charge in the ballpark of $.30/transaction + 3%. And Apple could make a single credit card charge totaling every purchase through Apple for the month, which would make the fixed portion a fraction of what the credit card companies charge. If Apple was charging $.10 + 3% or 5% there would be hardly any objection. And at Apple's scale, all the rest of that stuff costs them something like a penny per transaction. > And they have to review your app.. which has a real labor cost. I'm happy to do that part myself, or go price shopping for reviewers on the open market. How do I do that? > If your app is $50, I could understand the outrage over the price.. but most apps are a dollar or two, and sell little to nothing.. And yet they charge the same percentage for the $50 app, which is why you don't see many of those on iOS -- the people who would make $50 apps make them for PCs instead because Dell doesn't demand a third of their revenue. > the profits on that have to be insignificant or nonexistent. If the profits are so low, why don't they leave the market and let some other saps compete to provide app stores?

AnthonyMouse 10y ago

> It costs money to charge users credit cards. If your app is $1, and you were handling the credit cards yourself, that could easily be $0.30 (and increases for higher prices). Apple gets better pricing than that obviously.. but they also have to maintain the servers that handle/store the credit card data, etc. Credit card processors charge in the ballpark of $.30/transaction + 3%. And Apple could make a single credit card charge totaling every purchase through Apple for the month, which would make the fixed portion a fraction of what the credit card companies charge. If Apple was charging $.10 + 3% or 5% there would be hardly any objection. And at Apple's scale, all the rest of that stuff costs them something like a penny per transaction. > And they have to review your app.. which has a real labor cost. I'm happy to do that part myself, or go price shopping for reviewers on the open market. How do I do that? > If your app is $50, I could understand the outrage over the price.. but most apps are a dollar or two, and sell little to nothing.. And yet they charge the same percentage for the $50 app, which is why you don't see many of those on iOS -- the people who would make $50 apps make them for PCs instead because Dell doesn't demand a third of their revenue. > the profits on that have to be insignificant or nonexistent. If the profits are so low, why don't they leave the market and let some other saps compete to provide app stores?