Hehe:
"Analysis Group defines small developers as those who have fewer than a million annual downloads and who earn up to $1 million per year, and this group accounts for more than 90 percent of developers on the App Store."
Any entrepreneur would call this group the "startup or failure group", and that would be kind considering we have startups already with more than 4 million in revenue year. On another note, more than 90%, does this mean 99%?
"According to the study, revenue growth for small developers outpaced revenue growth for large developers, with earnings improving across all app categories."
Well if you earn $1 in a year and in the next you earn $7 that is 700% growth. So we can see where these averaged percentages come from.
"Developers have seen success over time, with the study suggesting that many apps earning over $1 million in 2022 started out as apps from small developers."
I would expect so. But many can be 2, 10 ... 100 out of millions. How many really?
Service providers will want to reach their customers in the devices they use, whatever they might be. Of course if not enough users use a specific device brand or type, it is not a priority.
What I've read is that 1% of the apps provide 94% of the US App Store revenue (commissions). TikTok being one of them.
Which kind of suggests to me that this all situation could have been avoided and Apple could if it wanted come out extremely positive instead of a bully. I mean, given the data maybe Apple could have written out 4% of its revenue and focus on the 1% ... say through commission based on tier ... say tear 0 (between 0 and X millions) just pay a transaction commission (say 2%), tier 1 (between X minions and Y ...) 10%, 30% (Y millions and X billions)... so on and so forth. Instead they opted for the contrary in some countries, making payment optional and reduce the commission to 28% or so for the services that opt out of its payment system. Crazy stuff. If they proceeded more rationally they would probably be able to keep everyone including the top 1% on the boat at 30% in the EU courts. The way I see it the drop that took all thing overboard was actually demanding commissions on the sale of indirect goods, goods that aren't software, even though software is the only thing that the App Store distributes. Which basically lead to the only possible conclusion, the revenue share is the price to pay for the service of distribution of software irrespective of the goods that are actually being sold.
Will see how this pans out.
Cheers.
