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If Apple's fees cost 30% of the price, then the actual developers who make the software must raise prices to make up for Apple's fees. How much, though? One mi
by ImPostingOnHN 2y ago
If Apple's fees cost 30% of the price, then the actual developers who make the software must raise prices to make up for Apple's fees. How much, though?
One might intuitively guess 30%, bringing $1 to $1.30. But Apple will take a cut of this price increase as well: $1.30 * 70% = $0.91, so still losing money to Apple's fees.
The actual amount they must raise the prices is (1 - (1 / 0.7)) = 0.428, or roughly 43%.
Doing this math backwards to factor out Apple's fees yields a confirmation: $1.43 * 70% ≈ $1