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Apple realised its App store cut was excessive nine years ago

by on05 May 2021


App store boss suggested a price cut but wanted to see how long they could milk it for

Phil Schiller, the Apple executive in charge of the App Store, raised the possibility of the company cutting its 30 percent commission rate to 25 or even 20 percent back in 2011 in response to competition.

Schiller floated the idea in an email to then Apple CEO Steve Jobs and head of Apple services Eddy Cue and has been revealed as part of the company's legal battle with Epic Games.

The email asked if Apple's 7030 splits will last forever.

Schiller's said: "I think someday we will see enough challenge from another platform or web based solutions to want to adjust our model."

Schiller suggests that if Apple were ever to change its fee structure, it should do so "from a position of strength rather than weakness" and floated the idea of Apple dropping its commission rate once the App Store is generating over $1 billion in annual profit.

"I know that this is controversial, I just tee it up as another way to look at the size of the business, what we want to achieve, and how we stay competitive", Schiller wrote. 

Last modified on 05 May 2021
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