Apple, one of the most valuable companies in the world could lose up to $16 billion if developers get their way. This news comes from shocking revelations from the Macquarie Research notes, which as reported by Business Insider, the developer community are opposing the App Store commission rate levied by Apple on all paid app and in-app purchases.
There are also reports of industry regulators who have intervened and are accusing Apple of practicing monopolistic behavior within the iOS app market. Experts now argue that developers combined with regulatory intervention may arm-twist Apple into reducing the App Store Commissions.
As things currently stand, Apple takes 30% on all paid apps and in-app purchases for apps and games published on the App Store for their first-year subscriptions. On their second year onwards, Apple reduces the in-app subscription to 15%.
“We believe that the traditional… commission rates for app distribution may come under pressure,” said Ben Schachter in the notes.
“Changes in the commission rates would meaningfully impact profits. Apple […] could take a $16 billion hit to its adjusted earning if it’s forced to make a significant cut to its …read more