Apple Says The App Store Doesn’t Make Them Money

With the massive popularity of the App Store and the large revenue generated from app sales, many people (including us) assumed that Apple was raking in the cash from the 30% they deduct from the sale of each app. However, Apple said yesterday during their Q1 conference call that that’s not the case.

“Regarding the App Store and the iTunes Store, we’re running those a bit over break-even, and that hasn’t changed,” Apple CFO Peter Oppenheimer said. “We’re very excited to be providing our developers with just a fabulous opportunity, and we think that’s helping us a lot with the iPhone and the iPod touch platforms.”

He also shed some light on the approval process through which all apps must go to get published in the App Store. They’ve gotten a lot of guff for it, but they say it’s for an important cause.

“I think it’s important to keep this in some perspective,” he said. “That we have over 100,000 apps on the store, and that over 90 per cent of the apps that we’ve had have been approved within 14 days of the submission. We created the approval process to really make sure that it protected consumer privacy, to safeguard children from inappropriate content, and to avoid apps that degrade the core experience of the phone.”

He also outlined the App Store police guidelines: “Some types of content, such as pornography, are rejected outright. Some things like graphic combat scenes in action games might be approved, but with appropriate age ratings.

“Most of the rejections, however,” he continued, “are actually bugs in the code itself. And this is protecting the customer – and the developer to a great extent, because they don’t want customers that are unhappy with the apps.”

[via The Register]

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