Apple reportedly held a secret meeting with app developers last year, to tell them to focus more on recurring subscriptions. The company explained that it was changing the model for the App Store to increase the amount of revenue that would be taken from monthly payments.
The meeting was held in a New York loft and was attended by approximately 30 developers, all of whom had received a special invitation.
In the past year, more apps have switched to a subscription model instead of one-off payments.
According to Business Insider, during a conference call reporting on the Q2 2018 earnings, Apple CEO Tim Cook said: “Paid subscriptions from Apple and third parties have now surpassed $300 million, an increase of more than 60% in the past year alone.
“What’s more, the number of apps offering subscriptions also continue to grow. There are almost 30,000 available in the App Store today.
The initiative has apparently been worked on since 2016 and is referred to as ‘Subscription 2.0’.
The new model sees Apple take 30% of the subscription costs, but that figure drops to 15% after the app has been live for a year. The rest of the revenue goes to the app developers and publishers.
Apple recently became the first company to pass the $1 trillion market cap after the average price of iPhones rose to $724.
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