Apple App Store: Difference between revisions

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==In-app purchases==

Apple has been collecting users' credit card numbers since launching the iTunes Store in 2004. The launch of the App Store in 2008, followed by the introduction of in-app purchases (IAPs) in 2009, allowed iPhone app developers to sell app features to users. The IAP system is provided as a developer framework named [https://developer.apple.com/storekit/ StoreKit]. Apps and their in-app purchases are managed through a dashboard named [https://developer.apple.com/app-store-connect/ App Store Connect]. App sales have eclipsed iTunes Store sales and are now a primary focus of Apple's Media Services division.

Apple has been collecting users' credit card numbers since launching the iTunes Store in 2004. The launch of the App Store in 2008, followed by the introduction of in-app purchases (IAPs) in 2009, allowed iPhone app developers to sell app features to users. The IAP system is provided as a developer framework named [https://developer.apple.com/storekit/ StoreKit]. Apps and their in-app purchases are managed through a dashboard named [https://developer.apple.com/app-store-connect/ App Store Connect]. App sales have eclipsed iTunes Store sales and are now a primary focus of Apple's Media Services division. Apple requires that any purchase of a digital good or service within an app use its in-app purchase system.

Apple requires that any purchase of a digital good or service within an app use its in-app purchase system. This may seem reasonable because the customer may inevitably call Apple support, demanding a refund for an app they have issues with. Apple would rather provide a refund and leave the customer with a positive support experience than initiate a messy process involving contact with a third party, whose customer service is likely to be of a lower quality.

App Store purchase fees range from 15% to 30%. In September 2016, Apple expanded subscriptions to be available for any type of app, also introducing a 15% discount incentive for users who had already subscribed for a year.<ref>{{Cite web |last=Goode |first=Lauren |date=2 Sep 2016 |title=Apple’s new subscription offerings are now available to App Store developers |url=https://www.theverge.com/2016/9/2/12774758/apple-developers-app-store-new-subscription-rules |url-status=live |archive-url=https://archive.ph/KmJCn |archive-date=7 Jan 202 |access-date=16 Mar 2025 |website=[[The Verge]]}}</ref> In November 2020, Apple introduced a reduced 15% fee for app developers with annual revenue below $1 million.<ref>{{Cite web |last=Centers |first=Josh |date=18 Nov 2020 |title=Apple Drops App Store Commission to 15% for Small Developers |url=https://tidbits.com/2020/11/18/apple-drops-app-store-commission-to-15-for-small-developers/ |url-status=live |archive-url=https://archive.ph/tt8Hs |archive-date=7 Jan 2026 |access-date=16 Mar 2025 |website=[[TidBITS]]}}</ref> For developers above this threshold, and for cases excluded from this program, such as for games, the fee is 30%. In the 2008 announcement of the App Store, Apple considered this a reasonable, industry-standard fee. However, the way we use apps has significantly evolved since 2009 - the world has shifted to heavily depend upon mobile apps, which have also evolved into more complex and sustainable business models than a simple one-time purchase.

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 ==In-app purchases==
-Apple has been collecting users' credit card numbers since launching the iTunes Store in 2004. The launch of the App Store in 2008, followed by the introduction of in-app purchases (IAPs) in 2009, allowed iPhone app developers to sell app features to users. The IAP system is provided as a developer framework named [https://developer.apple.com/storekit/ StoreKit]. Apps and their in-app purchases are managed through a dashboard named [https://developer.apple.com/app-store-connect/ App Store Connect]. App sales have eclipsed iTunes Store sales and are now a primary focus of Apple's Media Services division.
+Apple has been collecting users' credit card numbers since launching the iTunes Store in 2004. The launch of the App Store in 2008, followed by the introduction of in-app purchases (IAPs) in 2009, allowed iPhone app developers to sell app features to users. The IAP system is provided as a developer framework named [https://developer.apple.com/storekit/ StoreKit]. Apps and their in-app purchases are managed through a dashboard named [https://developer.apple.com/app-store-connect/ App Store Connect]. App sales have eclipsed iTunes Store sales and are now a primary focus of Apple's Media Services division. Apple requires that any purchase of a digital good or service within an app use its in-app purchase system.
-Apple requires that any purchase of a digital good or service within an app use its in-app purchase system. This may seem reasonable because the customer may inevitably call Apple support, demanding a refund for an app they have issues with. Apple would rather provide a refund and leave the customer with a positive support experience than initiate a messy process involving contact with a third party, whose customer service is likely to be of a lower quality.
 App Store purchase fees range from 15% to 30%. In September 2016, Apple expanded subscriptions to be available for any type of app, also introducing a 15% discount incentive for users who had already subscribed for a year.<ref>{{Cite web |last=Goode |first=Lauren |date=2 Sep 2016 |title=Apple’s new subscription offerings are now available to App Store developers |url=https://www.theverge.com/2016/9/2/12774758/apple-developers-app-store-new-subscription-rules |url-status=live |archive-url=https://archive.ph/KmJCn |archive-date=7 Jan 202 |access-date=16 Mar 2025 |website=[[The Verge]]}}</ref> In November 2020, Apple introduced a reduced 15% fee for app developers with annual revenue below $1 million.<ref>{{Cite web |last=Centers |first=Josh |date=18 Nov 2020 |title=Apple Drops App Store Commission to 15% for Small Developers |url=https://tidbits.com/2020/11/18/apple-drops-app-store-commission-to-15-for-small-developers/ |url-status=live |archive-url=https://archive.ph/tt8Hs |archive-date=7 Jan 2026 |access-date=16 Mar 2025 |website=[[TidBITS]]}}</ref> For developers above this threshold, and for cases excluded from this program, such as for games, the fee is 30%. In the 2008 announcement of the App Store, Apple considered this a reasonable, industry-standard fee. However, the way we use apps has significantly evolved since 2009 - the world has shifted to heavily depend upon mobile apps, which have also evolved into more complex and sustainable business models than a simple one-time purchase.