A significant number of app developers, both large and small, have expressed their dissatisfaction with Apple’s practice of charging a commission for all transactions made through the App Store. Even Elon Musk, CEO of companies like Tesla and SpaceX, threatened to engage in a “war” with Apple. However, a recent meeting between Musk and Apple CEO Tim Cook at Apple Park in Cupertino seems to have taken place. Now, Musk has once again suggested that he will be speaking with Cook to address the issue of the so-called “Apple tax.”
In a post on the platform X, Musk emphasized the importance of supporting creators. He urged X users, who have the means to do so, to subscribe to as many creators on the platform as they find interesting. Musk also pointed out that many creators on X come from challenging circumstances, and even a few hundred dollars a month can drastically change their lives.
Musk and X have implemented a program to provide incentives to creators. For the first 12 months, X will not take any cut from creators, and thereafter, it will only take 10% of their earnings. Musk stated, “We are amending that policy so that X keeps nothing until the payout exceeds $100,000, and then only 10%. The first 12 months are still free for all.”
So where does Apple fit into all of this? Well, Apple charges a commission to developers who sell their apps or digital content on the Apple App Store. The standard commission rate is 30% for most apps and in-app purchases. This means that Apple retains 30% of the revenue from each sale or in-app transaction, while the developer receives the remaining 70%.
Apple’s high commission rate has faced criticism from developers and companies, who argue that it is unfair and anticompetitive. Critics claim that the “Apple tax” limits developers’ earnings and hinders their ability to offer competitive pricing for their apps and services. In response to this criticism, Apple introduced the App Store Small Business Program in 2020, lowering the commission to 15% for developers earning less than $1 million annually from the App Store.
Musk plans to discuss the issue with Apple CEO Tim Cook, suggesting that Apple should adjust its commission rate to be just 30% of what X keeps in order to increase the earnings of creators. However, it is unlikely that Apple will make any special adjustments for Musk and X.
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Alex Smith is a writer and editor with over 10 years of experience. He has written extensively on a variety of topics, including technology, business, and personal finance. His work has been published in a number of magazines and newspapers, and he is also the author of two books. Alex is passionate about helping people learn and grow, and he believes that writing is a powerful tool for communication and understanding.
