The Misadventures of Quinxy truths, lies, and everything in between!


Apple gets 30% of iPhone sales???

I was shocked to discover that Apple gets 30% of all Apple iPhone app sales.  I'm no expert in these matters, but that sure seems steep, and sure seems like something only Apple would attempt and manage to pull off.

Apple doesn't charge your credit card every time you make a $0.99 purchase, instead it waits until certain criteria are met, then charges you.  I assume there's some sort of formula which charges your credit card when you've either run up more than so much in charges or when you've owed an amount longer than so long.  By doing that they effectively have a micropayment system implemented, in the sense that the average charges they're making on credit cards is probably at least $10.  And for that $10 charge the amount they pay to their credit card processing company is relatively small.  Perhaps it's $0.25 plus 2.5% of the charge, for a total of approximately $0.50, of 5% of the total charge.  So after paying the app software author, after paying the credit card bank, they're effectively getting something like 25% of app sales.  I understand that Apple is in it for the money, but that seems greedy to me.  I read somewhere a few weeks ago that Apple doesn't expect to make a profit on the store, but I have a really hard time believing that. Operating the iTunes app store certainly shouldn't cost that much, even with the staff they need to hand approve each app.  The apps themselves are supported only by the developers and unlike everyone else Apple presumably barely has any charge backs they need to issue.  The part that offends me is the usual, that end users and developers are given NO options, it's Apple's way or the highway.  Is 30% excessive?  If they weren't being monopolistic we might actually be able to know that.

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