App Store (ios)
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App Store (ios)
The IOS App Store is an application marketplace on IPhones that enables users of Apple products to browse, download, and provide feedback on applications. The applications are created by 3rd party developers who choose to share their software on the App Store. Apps are offered as free downloads, or purchase to download. For any App, Apple controls the infrastructure of uploads, downloads, and payments. As a result, Apple collects a varying percentage of App revenues.
History of The App Store
In October of 2007, Apple officially announced that they were creating an App Store to allow 3rd party developers to offer their applications to Apple users. This decision came after Apple previously only allowed users to utilize Apple’s web browser, Safari to access web applications. A year later in July 2008 the App store was released with 500 applications available for download. Apps were offered as free downloads or cost money, with 90% of apps costing less than $10. 30% of sales revenue was collected by Apple, which Steve Jobs positioned as more generous than most video game industry, and accounted for Apple handling distribution and marketing of apps. In October 2009 Apple added in app purchases to the App Store, which enabled users to spend money inside of Apps they have already downloaded. Purchases were required to go through Apple’s payment processing, which charged a 30% fee. After Sony disregarded Apple’s rules by routing ebook sales to their own payment services in February 2011, Apple rejected Sony’s new app and restated that Apps are not allowed to redirect in app purchases to payment services that are not Apple’s. Additionally in February Apple began to offer subscription services for publishers, again with their 30% fee. In January of 2014, Apple reached a settlement with the Federal Trade Commision regarding Apples manipulative in app purchases tactics. As a result Apple offered $32 Million in refunds to consumers and initiated the increase of parental controls to prevent children from unknowingly spending money. By June 2016, Apple expanded their subscription app models. This led to a drop to a 15% fee after the first year of subscriptions and the introduction of “reader apps” which allow accessing content subscriptions, but does not allow users to be redirected to other payment options. Additionally, Apple implemented advertising in the App Store. In November of 2016 a House committee investigation found that Apple gave Amazon lower fees on the App Store. Apple claimed the program was established already, and it was formally announced in April of 2020. Before that, in April 2019, Apple was banning 3rd party screen time and parental control apps. This received criticism from the public as it was seen as anti competitive because Apple has competing products in the market. Apple eventually reinstated these apps in July. Later that year in September Apple released the Apple Arcade, which provided a subscription service to exclusive and premium games. In August 2020 Apple banned Fortinite from the App Store after they implemented their own in-app purchasing system. This initiated a long legal battle which concluded that Apple’s App Store is not an illegal monopoly, but Apple is not allowed to prohibit 3rd party in app purchasing services. At the same time Apple started allowing apps such as Netflix and Spotify to have a link to their payment services within each app in September 2021.
