Sunday, February 20, 2011
Is Apple Asking for too Much?
An article from mashable.com takes a look at how Apple is making some it's app developers very angry. Recently Apple announced that developers will now be able to place a monthly subscription fee on the Apps that they produce. The developers were happy to hear that, but they were furious when they heard that they had to give Apple 30% of the revenue made from the subscription fees. Apple typically only charges a 2.5% credit card fee. This could have a serious impact on the amount of apps developed for the iPhone. Developers who planned to make apps that required a monthly fee to stay alive, now might not be able to afford to build the app since 30% of their profits will go to Apple. This could be especially hard on developers of music apps. Those developers already have to pay content fees to artists and record labels. They need to charge a monthly fee to draw a profit and update their software, but losing 30% of their revenue to Apple might be too much for some app developers to overcome. I also think that apps that require a monthly fee won't sell well to begin with. Most people buy apps because they are usually cheap and very simple to use. The thought of a subscription fee on some apps is definitely going to turn some consumers away. I know I could never get an app that required a subscription fee. Most teenagers probably wouldn't be able to either, since our parents would be the ones paying for it, and an app that requires a subscription fee seems a little extreme. If an existing apps decides to start charging a subscription fee there is no doubt that it's demand will go down. I don't think charging a subscription fees for apps is a good idea, since I don't think most people are willing to pay one for an iPhone app, but if developers are going to charge one, Apple does not deserve 30% of their revenue. That's just asking too much.