Apple App Store Model At Risk With HTML 5

Written by: Gundeep Hora on 1/07/10  |  Filed Under Apple  |  Share    

After talking to Opera about HTML 5 at CES 2010, it looks like Apple’s App Store model is at risk where they lock-in developers and charge them 30% of all sales. It’s not the 30% that has us worried. Good quality apps are generating a lot of revenue and giving 30% of it to Apple for massive distribution is digestible. However, Apple’s closed platform model is what have us worried for the company in the coming 3-4 years. As Opera pointed out, the App Store will have to change and embrace HTML 5 Web apps, and they will have to give developers access to the hardware through APIs and other means.

That means come 2012-2013, which is still a long time away mind you, it’s going to be difficult for Apple to stick to their close-minded approach.

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  • "Good quality apps are generating a lot of revenue and giving 30% of it to Apple for massive distribution is digestible". Wow. Hora must be employed by Apple or at least have shares in the company. Handing over 30% of your revenue is like saying that Apple owns 30% of your company - and for doing what? Apple's app store isn't at risk from HTML 5 but from companies like mine who build app stores to sell apps built on open standards like Android and don't rip off the developer by taking 30% of their revenue.
  • I see exactly what you are saying; however, I look at it as a partnership. Apple could really make this work on a tiered system. For developers that are generating a lot of revenue, Apple could just take a smaller cut. After all, they are not in it to make money from the App Store. However, I think it's reasonable enough for them to take a 30% cut. As a developer, I would be okay with it.

    The 30% cut becomes a problem to serious iPhone development companies like Tapulous, where they are employing more than a dozen employees.
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