Apple is making major change to the way it splits money with app creators


Tim Cook


Apple will now take a smaller cut of money from app developers if customers stick with their subscription for longer than a year, Phil Schiller told The Verge in a pre-WWDC interview.


Currently, Apple splits app revenue 70-30 with developers, keeping 30% of the purchase price for itself.

Apple though will "soon alter" that model for developers who sell their app as a subscription, instead of a one-time purchase, Schiller said.

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If an app is sold as a subscription, developers who get customers to stick around for longer than a year will see an 85-15 split after the first year instead.

The change means more money in the pockets of app developers that sell their apps as a reoccurring subscription rather than a one-time deal. However, even Apple's developer website cautions that this isn't the best business model for all apps.


"Although all categories of apps will be eligible, this business model is not appropriate for every app," Apple's developer site reads. "Whether updating content on a regular basis, providing on-demand use of a service, or giving access to a large collection of content, successful auto-renewable subscription apps are equipped to offer continued utility and enjoyment to their subscribers."

The idea is for app developers to continually update an app and keep customers engaged. If they do under the subscription model, the change now means they'll be financially rewarded for it.

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