You can be the patron of a creator and Apple in the same time! Jokes aside, this is awful...I like/use Apple products but this unacceptable, I hope everyone dodges this and pays through the website
In all seriousness, finance people see everything through the lens of margins and money primarily. Since any company's function is to deliver value to its shareholders, if allowed, bean counters will scorch the earth for it.
Ultimately, this is at odds on how Jobs approached things, i.e., money was not the end all be all.
Those with listings of SMS codes for which app to download, depending on the phone OS.
So it was a great deal back in 2008.
The fact remains that it was a very stupid system in 2008, and lowering the percentage doesn't obviate Apple's perverse incentives.
If you sold software over the internet, you had PayPal, which had a flat fee of $0.35 + 1.7% or so and if your shareware was $30, the transaction fee essentially was ~$1. Stripe had roughly the same fee when they launched. You had more traditional credit card merchants and when I inquired one in Germany back in 2010, it was more or less in the same ballpark (~10%).
In Europe, you could also just get money wired, which cost you something like 0-10 cents.
30% for payment processing were always extremely high.
Edit: The only thing where you had no other options was when you tried to sell stuff on the internet for $1, because the flat fee part of credit card processors would eat up all of that. Apple indeed helped here a little bit, because it was always 30% and no fixed part.
If you think you can make any money selling software on the internet and paying nothing other than $0.35 + 1.7%, think again.
- Developers helped to make Apple the platform it is today.
- Apple had their 30% fee when the App Store was MUCH smaller. It's not like that fee came only after they had the audience.
- Apple will do zero marketing for you unless you are already successful.
- Apple doesn't earn money with the most popular free apps, but still hosts them. They could charge by traffic, by downloads, whatever, but they won't.
- Apple will charge you if you make money in the app. They will force you to use their payment processor if you want to make money.
So, it is 100% a processing fee and everything else either came later or isn't congruent with what they actually charge money for.
Steam comes to mind. They take 30% (and I think 5% for credit card or whatever).
So I do not think that "outrageously wrong" is characterizing my remarks adequately.
Your phone is general purpose, steam is focused on a narrow band of market
The iOS store adds nothing but cost to the purchasing process, with hilariously terrible discoverability and sorting, steam makes navigating and discoverability breezy and easy
Your phone is arguably not an optional part of your life, whereas nobody ever missed an important call because they weren't on steam
Steam does not take any money from apps or companies for transactions it was not involved in. Here, and in other cases, the costs of doing business with apple extend to people who have no relationship with apple at all
PayPal also offered a "micropayments" rate (that I used in Cydia), wherein they charged $0.05+5% (which is much better for payments under $12).
However, newspapers and content creators are popular in a way that carries political weight. It'd be wise for Apple exempt these categories and write off the few hundred million in forgone revenue as a political expense.
For example allowing the NYT or Joe Rogan to have nice paid apps with no fees would be a much more effective use of money than the same amount in political donations.
They do have carve outs in the agreement, such as the 'reader' exception. Newspapers I believe also fall under the 'reader' exception.
I have suspected for a while that the 15%-after-the-first-year subscription rate drop was a carve out targeted specifically at trying to retain Netflix IAP. However, Netflix was able to operate without IAP because of the "reader" exception.