Apple Tapping App Publishers Revenue Quietly

Developers of popular apps are making serious allegations against Apple: The company is said to be running ads for the applications without consultation and secretly in order to lure users into the App Store. The goal: cash in money that would otherwise go directly to the developers.

Apple secretly place ads for apps, which costs developers millions

A look at our Apple Special shows that we have been reporting on violent disputes between the company and developers for years around the App Store and billing for subscriptions and in-app purchases. According to Forbes, several app developers are now accusing Apple of using unfair tactics again. According to this, the company has been secretly and without the consent of the developers for around two years now, placing Google ads for high-quality apps that can potentially generate high income from in-app purchases.

What at first glance might seem like free advertising can, according to their own statements, result in losses of millions for the developers. “Apple is trying to maximize the money they make from in-app purchases in the Apple Store,” a source told Forbes who refused to be named for fear of reprisals. “Apple has found that they can make more money with these developers by pushing people to buy on the App Store instead of on the Internet.”

The principle that Apple is pursuing here seems clear: Users who take advantage of the developers’ direct payment options are a lost business. However, if subscriptions and in-app purchases are processed via the App Store, you can collect 15 to 30 percent commission. Since annual subscription fees can also reach high three-digit ranges, it can be very worthwhile to redirect customers with the ads.

Costs More To Developers

The developers complain about another problem: If you want to land your own advertising above the ad that Apple places for its own app, it costs more money. This, in turn, can lead to a huge increase in customer acquisition costs – a crucial value for the growth of apps. “Apple is not only getting more money from developers, but it is also damaging their business,” said one developer.