End of App Stores

Rajeev Raman

June 20, 2023

Regulators will require Apple and Google to allow 3rd party payments for apps within the next few months. Like AI, this is a massive shift that will create confusion. The original sin was charging developers 30% for apps sold through the app store. Apple and Google had plenty of precedent for the 30% fee. Not long ago, mobile carriers charged 50% or more to carry a ringtone or a maps app on their devices. The problem today is that credit card companies charge between 2% and 5%, and in that light, 30% seems excessive and monopolistic.

Apple and others have invested hundreds of millions in tools like Xcode, content safety, privacy technology, and global payments to give a developer that chance to achieve global success solely based on creativity. We saw this play out time and again with games and productivity apps. All of this costs money; therefore, charging more than a credit card company does seem fair. But how much more? My answer is 10%. As a developer, receiving 90% of the revenue from my app sounds equitable. However, once regulators got involved, we moved past the point of adjusting the fee. Apple and others will undoubtedly lower the fees, but there will be other app stores. Expect one for games from Electronic Arts, another for media & entertainment from Disney, and one for productivity from Microsoft. Doesn't seem that crazy anymore, does it? 😁

Ready to see more?

Our sales and technology experts can answer all your questions and help you explore the easiest use case for a no-code proof of concept test.

You may also be interested in


The summer slog is coming - three tips for keeping your customers engaged during slow times

April 29, 2024


Read how businesses can efficiently use marketing segmentation to boost customer retention rates and build long-term brand loyalty.

April 17, 2024


Unlike industries such as travel agencies and CDs/DVDs, news is adapting to the new world. Moreover, people are growing weary of low-quality news, even if it's free. Almost every newspaper we collaborate with has adopted a paywall model (free articles, followed by a subscription), and local news represents an incredible, yet underutilized opportunity.

March 26, 2024

See more