At launch, Apple operated the App Store hoping to break even, and 30% wasn't quite doing it at first.
On a $.99 app, they still might not. I mean, they might, given economies of scale, but barely. Free apps incur costs with zero compensation. If all apps cost 99 cents, I don't think we'd be having this conversation. If Apple were still operating the App Store at break-even, I don't think we'd be having this conversation.
Apps with IAPs that are $9.99, that's a lot of extra profit. Apple might argue that they help offset all of the free apps, but obviously a company like Epic is going to feel singled out.
Apple is no longer only trying to break even with the App Store. They have openly stated that it is profitable, and that they want it to be more so. Epic and others with higher-than-99-cents sales don't like giving up so much, and I can't say I blame them.
The trouble is with the App Store that you can't charge more on the App Store than you do elsewhere to cover the costs of the App Store. This is perhaps the anti competitive part - if you could just pass on the App Store costs then the free market would reign.
On a $.99 app, they still might not. I mean, they might, given economies of scale, but barely. Free apps incur costs with zero compensation. If all apps cost 99 cents, I don't think we'd be having this conversation. If Apple were still operating the App Store at break-even, I don't think we'd be having this conversation.
Apps with IAPs that are $9.99, that's a lot of extra profit. Apple might argue that they help offset all of the free apps, but obviously a company like Epic is going to feel singled out.
Apple is no longer only trying to break even with the App Store. They have openly stated that it is profitable, and that they want it to be more so. Epic and others with higher-than-99-cents sales don't like giving up so much, and I can't say I blame them.