Some developers are pushing for Apple to reduce or even eliminate the App Store commission. Now the company has issued a warning to investors.
Since the launch of the App Store in 2008, Apple has charged developers and app providers a 30 percent commission on every sale. This includes both apps and in-app purchases. Apple has already reduced this fee once, lowering it to 15 percent for recurring subscriptions starting in the second year. However, most transactions are one-time purchases, not subscriptions. Given the current situation, Apple has informed its investors that any reduction in this 30 percent App Store commission will significantly impact its revenue and, consequently, the company's financial results, according to Bloomberg. The news outlet reports that Apple sent out the following statement:
If the commission rate the Company retains on such sales is reduced or otherwise restricted or eliminated, the Company's financial condition and results of operations could be materially adversely affected.
The Cupertino-based company yesterday announced fourth-quarter 2020 results with revenue of $64.7 billion and profit of $12.67 billion.
App Store Commission: Is Apple Considering a Reduction?
The services category itself recorded revenue of $14.55 billion, compared to $12.5 billion in the same period last year. These figures naturally include App Store revenue. A few weeks ago, Fortnite was banned from the App Store after Epic Games released a new update that bypassed Apple's in-app purchase system to avoid the 30 percent commission. Epic is now suing Apple, claiming the company is acting as a monopolist by forcing developers to pay App Store fees. Apple has also faced antitrust investigations by the House Judiciary Committee. Whether an update to the App Store commission will actually be implemented in the near future remains to be seen. At present, however, there is no indication of such a plan. AirPods Pro are on sale at Amazon – available now . (Photo by nikkimeel / Bigstockphoto)
