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I've disclosed my App Store revenues before (http://www.trevormckendrick.com/my-first-year-in-the-app-store/ http://www.trevormckendrick.com/my-first-year-in-th

I've disclosed my App Store revenues before (http://www.trevormckendrick.com/my-first-year-in-the-app-store/ http://www.trevormckendrick.com/my-first-year-in-the-app-sto... and http://www.trevormckendrick.com/My-2nd-Year-in-the-App-Store/ http://www.trevormckendrick.com/My-2nd-Year-in-the-App-Store...). Apple can absolutely afford to do this financially, but the 70/30 split is practically the only thing that hasn't changed in the App Store since it launched. So why don't they? A few possibilities: - They have a similar split with music labels, so giving more to developers could hurt their music industry relationships - They have more interest in helping the big app companies like Supercell, simply because of the revenues and brands they create - They don't want to give additional incentives to creators of crappy apps who never make much money anyway Whatever Apple's reasons, they haven't changed iTunes music revenue splits in over a decade. So I don't expect them to update developer splits anytime soon either.

rhino369 12y ago
Why would someone with a monopoly over the software on millions of devices ever reduce prices?
- Consultant32452 12y ago
  Because it's not like fuel. Most people have a fairly inelastic demand for fuel. You kinda have to drive to work. You really don't need apps, and no one needs to make the apps. Running sales can increase consumer demand. Increasing the profit margins for developers could increase supply of quality apps, thereby increasing net revenues for Apple on a smaller cut of the pie. I rather like the current system for it's simplicity and while of course I'd like them to charge less I think their cut is reasonable.
- sparaker 12y ago
  To gain more development support. More developers = more apps = more users = more revenue. It makes sense.
  - enlightenedfool 12y ago
    well even if they take 50% cut, developers are not going anywhere else. So, the equation is more like whatever cut apple takes = more developers =...= more revenue
  - EpicEng 12y ago
    There's certainly a tipping point though. Having the store flooded with more low quality apps doesn't help them, and they seem to be doing pretty well currently.
  - EpicEng 12y ago
    There's certainly a tipping point though. Having the store flooded with more low quality apps doesn't help them, and they seem to be doing pretty well currently.
  - s73v3r 12y ago
    Apple's not the one hurting for quality developers.
TomGullen 12y ago
> Apple can absolutely afford to do this financially, but the 70/30 split is practically the only thing that hasn't changed in the App Store since it launched. So why don't they? You missed the "They are making bank and don't see any need to change the payment structure" possibility.

rhino369 12y ago

Why would someone with a monopoly over the software on millions of devices ever reduce prices?

Consultant32452 12y ago
Because it's not like fuel. Most people have a fairly inelastic demand for fuel. You kinda have to drive to work. You really don't need apps, and no one needs to make the apps. Running sales can increase consumer demand. Increasing the profit margins for developers could increase supply of quality apps, thereby increasing net revenues for Apple on a smaller cut of the pie. I rather like the current system for it's simplicity and while of course I'd like them to charge less I think their cut is reasonable.
sparaker 12y ago
To gain more development support. More developers = more apps = more users = more revenue. It makes sense.
- enlightenedfool 12y ago
  well even if they take 50% cut, developers are not going anywhere else. So, the equation is more like whatever cut apple takes = more developers =...= more revenue
- EpicEng 12y ago
  There's certainly a tipping point though. Having the store flooded with more low quality apps doesn't help them, and they seem to be doing pretty well currently.
- EpicEng 12y ago
  There's certainly a tipping point though. Having the store flooded with more low quality apps doesn't help them, and they seem to be doing pretty well currently.
- s73v3r 12y ago
  Apple's not the one hurting for quality developers.

TomGullen 12y ago

> Apple can absolutely afford to do this financially, but the 70/30 split is practically the only thing that hasn't changed in the App Store since it launched. So why don't they? You missed the "They are making bank and don't see any need to change the payment structure" possibility.