Likely it’s 15%, no? Ok so follow along with me here. Let’s say you are (or get to be large enough) to reach 1 million dollars in revenue per year and goes up to 30%. Still worth it?
Ok, now let’s imagine that your breakout app is for meditation. Most of your costs are in the backend. You pay to produce relaxation soundtracks/videos. You host them on servers that you rent. You pay for the bandwidth to serve your growing user base. What does Apple have to do with any of that? You offer a subscription and set pricing based on your costs, and Apple is getting 30% of your revenue so that your users can watch videos off of someone else’s servers (that you’re already paying for)? Still worth it?
Now imagine that you are Spotify with $10 billion in revenue. In Apple’s fantasy world they are entitled to $3 billion for hosting an app?
Or…
Maybe Apple could just charge developers for app distribution based on the operating costs of the App Store - just like you do with your product.
Yeah, 15%.
If my app were to hit $1m/year, yes it would still be worth it.
What does Apple have to do with me hosting backend services? Nothing, but they
do have something to do with hosting and letting people download the app. They're also pretty heavily involved in developing and maintaining the App Store, Xcode, iOS, iPadOS etc. They have to pay their staff to develop these things. They pay their legal team to ensure the developer contracts and tax contracts are correct for every country my app is available in. So yeah, still worth it.
Okay, I'm Spotify. I have $10bn in revenue. The app is free for people to download (Apple pays for all that). If someone wants to subscribe they can do so in the app, and I'll pay Apple the 30% commission (covering payment processing, hosting, developing and maintaining Xcode and the App Store etc.). If you want Premium, then you can go outside of the app and subscribe and we'll pay the payment processing fees, the maintenance of our website, employing staff to help customers etc. If everyone subscribed to Spotify outside of the app (as in, no one was ever able to subscribe in the app, ever, right from our launch), then Apple has paid all the outlay for developing the infrastructure and I've paid nothing to Apple for all that, and I'll never pay Apple a penny for anything they do in future to help me develop and improve my app. Does that seem fair?
If Apple charged developers based on how much it actually cost to download an app, no one would ever download free apps because they'd no longer be free. All apps would have to charge a price, however small. Would it be different for each app based on its file size? Would a 1MB app be charged less than a 200MB app? If so, would Apple have to charge based on the actual bandwidth used or could they introduce tiers? Say, anything less than 10MB is $0.25, 10MB-20MB is $0.30...? Wouldn't that mean some apps were being charged more than they should (an 11MB app vs. a 19MB app), and that Apple would be making a profit by using these tiers? Okay, so exact bandwidth use only then. Now, how much does Apple actually get charged for their bandwidth? I don't know, but it likely fluctuates, which means app prices would change
all the time. Is it worth it to the customer to switch to this model?
If you want this, then you should also be expecting Apple to charge prices for their hardware based on the exact market rate for the currency you're buying in, right? Or isn't Apple allowed to make variable amounts of profit on a product? So I could buy an M1 MacBook Air today for £1,000, but tomorrow it's £992. Apple lost £8 because they left their profit margin at 40% instead of 41%. Silly Apple for not employing people to recalculate prices on an hourly basis worldwide!
Oh, and what happens when Apple introduce their new rOS for their AR/VR headset? They'd have to tot up everything they've ever spent on developing the new OS, staffing costs, hardware design, prototypes, flights abroad to get the hardware built... Then, when they release the headset and developers start writing apps, does Apple try to recoup the $10bn they've spent on R&D by charging developers or should they just give that away as a freebie because they're not in this game to make any money? /s I mean, that's the cost of actually having those apps in the App Store (ah, the new bit in the App Store so they'll have to add in those costs, too). Right, so I create an rOS app that I'd like to sell for $10 and I'll get $9 back because the costs are $1 to distribute the app (covering bandwidth, staffing, Xcode updates etc.), but Apple tell me that they need to recoup that $10bn because they're not a charity, I'm gonna be charged $5m in the first year, or I can spread it over five years as long as I keep my app online, but hey, I get my $9 for each copy sold and there are no other charges to pay.
It's an extreme but it's there to point out that charging actual delivery costs isn't actually that easy.