Daily Archives: February 17th, 2011

Apple Wants a Slice Of The App Pie

Apple pie has been consumed in England since t...

Image via Wikipedia

Last month Apple announced that the ten billionth app had been downloaded from the app store. Apple’s app store is a huge success that has revolutionized the way people use mobile devices, and the way online companies do business. Now every major mobile OS manufacturer has an app store, and Gartner recently predicted that 17.7 apps will be downloaded this year alone.

So it’s hardly a surprise that Apple wants a slice of the pie. They’ve announced big changes with regard to their app store that include, as the most controversial, their taking a 30% cut of all subscriptions that they drive to a company through their app store. Along with that, they are implementing changes in the platform that will make it much easier for mobile app customers to purchase apps from the store with one click. So, enhancements for the seller, enhancements for the buyer, and a cut for Apple.

Of course, the companies that had been enjoying lots and lots of app sales through the Apple app store without any rev share are not at all pleased. Rhapsody, as a subscription based on demand platform, was downright pissed off, calling Apple’s 30% share “untenable”, and adding that Google’s rumored-to-be-coming-soon 10% rev share was more reasonable.

So, the app party is kind of over, or at least the open bar has closed. I’m just not sure that it’s unreasonable that Apple wants a cut, a pretty big cut, of the money everyone is making off of their platform. If the improvements are so good that it’s as easy to subscribe as it is to download a free app I think companies will benefit. The problem now is that disappearing from the app store would be like cutting off a lifeline. Which may be the indication that Apple has earned a slice..

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