New calculation from Sensor Tower analytics suggests neither Google nor Apple is surrender a considerable revenue amount by transforming the fees that they ask developers. On Tuesday Google has published a report that follows changes about the previous charges on app makers for its Google Play app store. It is absolutely similar done by Apple in December.
At the beginning of July 1, the Google Play app store will charge Android developers 15% of their first $1 million amount in virtual sales for Android phones. After that Google will ask 30% rate of sales. Apple also has scheduled its program similarly. Starting from January 1, small organizations get permission to apply for a lessen 15% fee from Apple. All total fees will bounce back to 30% while the organizations exceed sales of $1 million in the App Store.
According to the app analytics firm Sensor Tower, a new estimate is going to launch-
- If this 15% charge has scheduled on $1 million revenue on the Google Play app store in 2020, then Google might have to miss $587 million, or nearly 5% of Sensor Tower’s calculated of $11.6 billion in Google Play charges for the year.
- If Apple had programmed it in place for 2020, then Apple might have to miss $595 million, or nearly 2.7% of its calculated $21.7 billion in App Store charges in 2020.
Also Read: A.I. chip unit of Baidu evaluated at $2 billion after Investment and turning Standalone business
The Sensor Tower highlights in their rough estimation that apps are a profitable business and the changes of charges applied by both Google and Apple will definitely support small app developers. The organizations that earning maximum profit will still have to pay nearly 30% of virtual sales.
