Recently, Bloomberg reporter Mark Gurman reported that Apple will allow iPhone users to sideload apps. This will be the first time something like this happens on iPhone. However, iPhone users won’t be able to do this until iOS 17 arrives. This also means that app developers can be exempted from paying fees for listing programs in the Apple App Store. App sideloading means that users can download apps from channels other than the official App Store without listing the program in the Apple App Store. That means developers are exempt from paying the usual 15% to 30% fee to list their programs on Apple’s App Store.
Apple said adding sideloading would undermine privacy and security protections. The company claims that millions of iPhone users rely on its security and privacy features. It states that sideloading apps will leave users vulnerable to malware, scams, data tracking, and other issues.
However, the EU Digital Market Law (DMA), which came into force on November 1, 2022, requires Apple to open up its services and platforms. Apple risks heavy fines if it breaks EU law. The practice could expand outside the EU if other countries introduce similar legislation. For example, the US is considering legislation that obliges Apple to allow sideloading.
Editor’s Comment:
This change may have some impact on developers and Apple. Developers can sideload apps to avoid paying fees to list their programs on Apple’s App Store. However, Apple may need to make some changes to comply with European Union digital market law. At the same time, this change may also have some impact on users’ privacy and security, and users should use it with caution. Well, users have since argued that whoever sideloads apps is well aware of the risks. If Apple is really sincere, it just needs to be a quick warning to users about the risk of sideloading before they install an app.
Apple tax – the history
The 30% discount on all transactions made on the Apple App Store has been the subject of controversy for years. Let’s take a look at the history of the 30% discount, popularly referred to as the Apple Tax. There are also issues surrounding this “load” and recent changes Apple has made to address these issues.
Apple popularized the 30% discount and applied that rate to all app purchases in 2008. A year later, all in-app transactions for digital goods and services, such as a virtual currency in a game or a subscription to a music , tv show, popular. , or dating app. Apple takes no part in app sales of advertising or physical products. Back then, there was much less resistance from app developers, partly because the App Store was still so emerging and digital transactions were complex without Apples staff. With Apple, it was “just about one click and that’s it,” he said Philip Shoemakera former senior App Store executive, who left Apple in 2016.
Criticism of Apple Tax
The 30% cut has been criticized by app makers such as the game company Epic and the music service Spotify. She claiming that it is too high and that Apple’s right to a large cut in their sales is unfair. Tesla CEO, Elon Musk has also criticized the cost of Apple’s App Store, calling the rebate Apple takes from developers “definitely not okay” and likens it to a “30% tax on the web.” Musk has also said that the fee is “literally 10 times what it should be”.
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In 2020, the commission was the subject of a legal dispute between Apple and Epic Games, the developer of the popular game Fortnite. Epic Games argued that the commission was anti-competitive and the case has brought the issue of the App Store commission into focus.
Recent changes made by Apple
In September 2021, Apple agreed to allow media apps, including newspapers and streaming services, to add third-party payment links to prevent the iPhone maker a 30% discount on App Store purchases amid growing scrutiny of its practices. These companies can bypass Apple’s in-app payment system by sharing a link to their website with App Store users who sign up for a subscription. Apple earns a 30% fee for payments users make to these apps to subscribe to their services.
Apples App Store Small Business Program allows developers earning less than $1 million per year from App Store sales to receive a 15 percent commission through the program for as long as they qualify. This program was introduced in November 2020 to make some concessions to smaller developers while still sticking to the 30% discount.
Impact on the mobile phone market
The Apple Tax has had a huge impact on the mobile phone market, with Apple’s premium pricing strategy influencing the pricing of other devices. Many Android brands have introduced premium devices with similar or higher prices than Apple devices. This has resulted in a shift to more expensive mobile phones.
The premium pricing strategy has also contributed to Apple’s market share, with the company holding a significant share of the premium mobile phone market. However, it has also led to criticism from some users who feel they are paying too much for Apple products.
In recent years, the mobile phone market has become more competitive with many Android brands introducing high-end devices at lower prices. This competition has pressured Apple to justify its premium pricing strategy, and the company has responded by introducing cheaper devices such as the iPhone SE.
Conclusion
In conclusion, the 30% discount on transactions in the Apple App Store has been a controversial topic for years. While some argue that the fee is too high, others believe it is fair due to the convenience and ease of use that the App Store offers. The App Store Small Business program and recent decision to allow media apps to add third-party payment links are steps Apple has taken to address some of the concerns of developers. However, the debate over the 30% discount is likely to continue as the app economy continues to grow and evolve.