Apple recently released its quarterly earnings report, and the news was good, to say the least. The tech giant reported that revenue and net profit had increased by 18% and 28%, respectively. But what caught everyone’s attention were Apple’s projected increases in revenue from purchases made within its applications store, known as the App Store. The company has projected an increase of 70%, to $10 billion, between the quarters of this year and next year – an unprecedented amount of growth in such a short period. This begs the question: why are people choosing to spend more money on apps?
Apple removes a 30% cut from publishers
Apple has announced that it will be removing its 30% cut from publishers of subscriptions to news and magazine apps, which means that publishers will have more control over their app prices. The change will take place on February 1, 2017. As of now, there are no other changes as far as pricing for apps or games goes; developers still get 70% of revenue for app sales and 80% for in-app purchases.
How this impacts users?
Apple recently announced that they will be increasing their commission rate to 30% for app purchases made on their devices. This change has started to make waves in the mobile world, not only because of its implications for developers but also because it means more money for consumers!
Apple’s increased commission rate will mean an extra 6.5 billion dollars coming into developers’ pockets over the next year. It also means that Apple customers will no longer have to go through in-app purchases through third-party apps if they want to buy something from a developer. The more important implication here is how this change affects users and how it benefits them financially.
Developers are excited about the new app purchase increase because it means more people will be buying their apps. It also means that those apps are more likely to be used regularly. This type of purchasing decision incentivizes developers to make better quality products that people want to buy, instead of relying on cheap gimmicks to get downloads. Apple has made it easier for developers to charge users for an app after they’ve tried it, which makes it easy and painless for someone who likes a game but doesn’t want to pay $2.99 upfront. In other words, this change could lead to higher quality products and happier customers!
What does this mean for other tech companies?
Apple has been making waves in the mobile world with its recent announcement of a 30% increase in-app purchases through apps. This change will only make it more difficult for other tech companies to compete with them as they have been leading this charge. For example, Google has announced that they are following suit and going to be increasing their app purchase prices by 25%. The rise of these prices will greatly affect how consumers see the value of their products, and if not careful can even affect how often they use them.
Key takeaways on what happened and where we go from here
Apple has made an impact on the mobile world by increasing its app purchase prices. It’s hard to tell what this means for the future of apps, but for now, it seems like customers are more willing to spend more money on apps. The reason behind this could be that people are expecting premium content and don’t want to be bombarded with ads or they want their favorite developers to continue creating quality apps. With more expensive purchases, users can also feel more confident that their credit card information won’t be stolen. Either way, it will be interesting to see how this affects app developers and other companies looking at mobile commerce opportunities.
