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And most card payment processors will charge you more than 30% commission if you sell a product for $1. The numbers are specifically picked to make it look bad without providing a clear disclosure.
Things to note: 1) The new terms are opt-in 2) The new terms have not been approved by the EU 3) The reason for the disparity is 10 million installs, which exceeds the 1 million threshold to pay €0.50/install. If you charge €1/install then you're paying 50% to Apple for that fee. If you charge €2/install then you'd be paying 25% to Apple because the fee is flat.
Does this apply to free apps too?
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Yup - this example is deliberately cooked to create a misleading impression.
Uh, given the number of $1 apps on the app store, how is it cooked in any way? It represents a good bit of current reality.
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Yup - this example is deliberately cooked to create a misleading impression.
It's a valid criticism of the new terms. A developer-friendly (and dare I say, user-friendly) fee structure would not have any cases where Apple takes 62% of revenue. Any fee structure so maliciously structured that this edge case exists, deserves such criticism.
The statement in the tweet is actually false in every case of making $10M in sales except this precise edge case.
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Uh, given the number of $1 apps on the app store, how is it cooked in any way? It represents a good bit of current reality.
$1 apps that make more than $10,000,000 in annual revenue?
But if Unity tries to do the same then they revolt.
And most card payment processors will charge you more than 30% commission if you sell a product for $1. The numbers are specifically picked to make it look bad without providing a clear disclosure.
Where did you get that from? I only pay 10% fee on $1 online transactions
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It's a valid criticism of the new terms. A developer-friendly (and dare I say, user-friendly) fee structure would not have any cases where Apple takes 62% of revenue. Any fee structure so maliciously structured that this edge case exists, deserves such criticism.
If it's an edge case then we can agree that it's misleading not to point that out. The statement in the tweet is actually false in every case of making $10M in sales except this precise edge case.
(10M-1M).5 + 10M.17 = 6.2M
If you make 10M for a 10 euro app (1M installs), the Apple cut is:
(1M-1M).5 + 10M.17 = 1.7M
The upshot is, if you are selling a 1 euro app, stay on the App Store. If you make it a €1/year subscription, it drops to 15% in the second year.
Everything is in Euros since dollars don't really apply to the discussion, yet...