Apple warns lower App Store fee will ‘materially’ impact financial results

Reported by Bloomberg, Apple has warned investors that, if the company’s fee for app and in-app purchases in the App Store was reduced, that it would hurt its overall financial performance.


The warning in a regulatory filing Friday came amid criticism from lawmakers and others about the cut of as much as 30% that Apple takes from third-party developers selling software through the App Store across the iPhone maker’s devices.

In a filing with the United States Securities and Exchange Commission, Apple said that a change in its current fee schedule for operating the App Store cause its financial results to be “materially adversely affected.”


“If the rate of the commission that the company retains on such sales is reduced, or if it is otherwise narrowed in scope or eliminated, the company’s financial condition and operating results could be materially adversely affected.”

Apple has charged its 30% fee for purchases in the App Store since its inception in 2008, a year after the introduction of the iPhone. When the company began to support in-app purchases, it extended the 30% to those as well. The company eventually decided to only charge 15% for app subscriptions that last longer than a year.


The company has come under scrutiny for its App Store fees but has maintained that its fees are in line with the rest of the industry. Google, Microsoft, and Sony all charge the same fees for their respective app stores.

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