On first glance, thats a breathtakingly impressive number:$260 billion.
Developers onApplesApp Store earned a quarter of a trillion dollars since its launch in 2008.
Consider just how many companies and independents that cash has breathed life into, its staggering.
But thats not the whole story.
Lets explore this a bit futher.
In a recent press release, Apple stated it paid out $260 billion to developers since theApp Storeslaunch.
On January 6 last year,Apple saidit had shelled out more than $200 billion in that period.
40% off TNW Conference!
Great news, right?
Shit tons of cash for everyone!
But also not at all.
This isnt uncontroversial and has come under fire in recent years.
In other words, it doesnt want to pay Apple 30% for in-app purchases.
The burgeoning public (and professional) backlash over this forced Apple to react.
And it did so by introducing itsSmall Business Program initiative.
A positive move, but one thats like putting a plaster on an amputated leg.
Its barely a ripple in the pool Apple is siphoning from development businesses.
In itsJanuary 2021 release, Apple said it paid out$200 billionafterits 30% cut.
Working backwards, this means total revenue was around$285.71 billion.
In other words, Apple pocketed around$85.71 billionby the end of 2020.
We saw earlier that Apple shelled out$60 billionto developers across 2021.
None of this is cheap.
But its hard to emphasise justhow much $110 billionis.
Thats the equivalent of the nominal GDP of Morocco (roughly $109 billion).
Thats an entire country.
It has a population of 37 million.
Its 274,460 square miles.
With that money it pays for education, roads, hospitals, military,everything.
It doesnt end there though.
After App Store devs are given their 70%, they have to pay tax on it.
If they were based in the Netherlands (where I live),thatd amount to 25%.
Want to guess how much tax Apple pays in Europe?
Well, thanks to some loopholes (and the Irish government),it gets away with 12.5%.
Devs on the other hand are effectively taxed twice: once by the government and once by Apple.
End the monopoly
There are cracks in Apples armor.
Of course, Apple is still fighting this.
The 30% cut is incredibly lucrative, especially when it comes to subscriptions.
Dont expect Apple to let it go without a fight.
Dont hold your breath though.
