Phil Schiller testifies in Epic case
The statements come from Phil Schiller, who has to testify in the lawsuit between Apple and Epic Games. To prove that Apple really does a lot for developers and does not just collect money, Schiller came up with a good amount of figures and noteworthy details. He also wants to show that the App Store is not a cash cow and that Apple does invest in all kinds of things for developers, without asking for money. They are of interest to people who want to know what goes on behind the scenes.
WWDC costs 50 million dollars a year
There is the cost of WWDC, Apple's annual developer conference. Before the pandemic broke out, Apple charged $ 1,500 for an entrance ticket, a hefty sum. It seems as if Apple is making a big profit, but according to Schiller that is not the case. It only covers part of the real costs, says Schiller. They are in fact 50 million dollars a year. Currently the costs will be somewhat lower, but it may be possible to organize a physical WWDC again next year.
Developer center at Apple Park
Schiller also revealed that Apple is in the process of building a developer center at Apple Park. Developers can come there to work on their apps and get support from Apple engineers. Schiller also said that Apple employs 5,000 people who deal with refunds for apps. That is a lot more than the approx. 500 people responsible for the App Store reviews. According to Schiller, developers are kept informed when a refund has been issued, so that they can decide to withdraw an app or service from the market.
Same contracts for everyone
According to Schiller, Apple does not favor any developer. The contracts are the same for all developers, regardless of whether you are a sole trader or a large company. Larger companies cannot negotiate better agreements, Schiller believes. There is a program that developers can sign up for, for example to use additional tools for TestFlight or Apple Wallet integration.
Schiller: & lsquo; Developer program is not overly expensive & rsquo;
Developers pay $ 99 per year to join the developer program. That seems like a lot of money, but according to Schiller it is not too bad. Previously there was a developer program that cost more than $ 3,500. That $ 99 is a flat fee and will expire for nonprofit organizations such as charities, schools, and government agencies. The fact that you still have to pay $ 99 prevents too much junk from entering the App Store, according to Schiller. & ldquo; It's important you want to pay $ 99, & rdquo; said Schiller. It makes you think carefully about whether you want to release a good quality app.
$ 400 billion worth of physical goods in one year
In the various studies that now running against Apple, the question is often whether it is fair that Apple gains 30% of all revenues. Schiller tried to substantiate it with his number mix and emphasized once again that in the year 2019, $ 400 billion worth of physical goods was sold in the App Store. Apple doesn't get a cent from that. Developers only have to pay a percentage for digital purchases, but for taxi rides, groceries and other physical products and services that you purchase via apps, 100% goes to the app maker. According to Schiller, this has to do with the fact that Apple cannot guarantee that these goods will actually arrive. This is possible with digital purchases.
More details will come out of the lawsuit in the coming days, as Craig Federighi and Tim Cook are also scheduled to testify.