Apple have an interesting business model in action when it comes to their app store. In order to tempt developers into the store, the big A will charge zero in the way of hosting and distribution. A cut of 30% will be taken whenever an app is sold.
So what of the results of a recent survey by Piper Jaffray that suggest around 71% of apps destined for the app store will be there completely free? Apple’s cut from the fees of these items looks to be, well, absolutely zero.
Rumor has it that Apple was looking for an average of $10 per app sold in the app store, and to this end it has been encouraging developers to charge ‘realistic’ figures for their apps. The news – from the same Piper Jaffray survey conducted by Gene Munster – that the average price of apps amongst the 29% that would be charged for was as little as $2.29 will be sure to disappoint Apple.
Apple will gain more than direct monetary benefit from the app store and we’re sure that it will not lose out despite the disappointing forecasts (disappointing from its point of view, anyway!). The app store is sure to make big media waves whatever it does. Brace yourselves, app lovers!