NetMag Global

Apple App Store- Increasing Money-Making Opportunities for developers

Phil Schiller(senior vice president of marketing at Apple) while talking to media a major change in subscription policies of Apple App Store. To involve more and more iOS developers to sale their applications on App store, Apple is now focusing on reducing the revenue sharing from 70/30 %  to 15% percent for all the one year old subscriptions. So once a developer has been through one year subscription, he will receive 85% of the sales his application make on the App Store.

The developers can only take advantage of this subscription model if their application does not contain any in-app purchases.

Also as Apple device business is slow, apple is focusing more on making money from other categories. The new blue box search advertisement is one of those categories. The application advertisement will be featured according to the keyword user has entered in the search box. However, Apple will charge for per click on that advertisement.  However this may effect the small scale developers to show up their advertisement on the app store as the bigger developers can give more revenue to show up their application each time a user enter a search term. In reply to this concern, Apple has guaranteed that only application related to that search term will be shown the user.

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