Apple makes it challenging for iPhone apps to become cheaper.

Officially, Apple backs third-party payments for US iPhone apps. However, it’s less favorable for developers and buyers. Despite this change, app prices won’t decrease as Apple still charges fees for in-app purchases on developers’ websites.

Apple will now charge 27% or 12% instead of the current 30% and 15% fees for iPhone apps. Developers are responsible for reporting earnings, customer support, and payment security. Despite the 30% fee, as a longtime iPhone user, I’ll continue purchasing digital content through the App Store via Apple.

iPhone users can easily purchase more affordable apps, and developers can implement the process effortlessly. I’ll explain the steps below, but I’ll caution you that it’s likely to be ineffective due to human nature.

Explanation of the 27% fee mechanism

Apple released a new support document guiding developers on adding links in apps to their websites and processing payments for digital content. Focus on the following paragraph, which outlines the transactions subject to Apple’s commission:

Apple applies a commission on digital purchases initiated within seven days from a link out, as explained below. While not encompassing all App Store-facilitated transactions, it is a reasonable approach to acknowledge the significant value Apple offers developers, especially in facilitating linked transactions.

This is a significant development. App purchases on a developer’s website, made seven days after the user clicks a link in the app to that website, will be exempt from the 27% or 12% fee.

Developers can provide more affordable apps and subscriptions outside the App Store, enabling buyers to access cheaper digital content. However, this is contingent on both parties engaging in the 7-day process, as I will elaborate below.

The actions required from developers

Assume you’ve incorporated a link to your website as permitted by Apple (refer to the information above). Subsequently, design a landing page informing users they can purchase the app or subscription immediately at a price similar to the App Store or wait for a 7-day period to avail a discount.

As a developer, you can determine the amount of savings passed on to the customer. You’ll need to cover the fees imposed by your payment processor and handle all customer support aspects for these sales. It’s also an option to retain a portion of the 27% for yourself. However, post the 7-day period, you can offer your app at a more favorable price.

The challenge lies in ensuring the buyer follows through with the purchase. Consider adjusting the landing page to include a registration form, allowing you to send emails to the buyer after the 7-day window closes. Additionally, you can insert a link for users to set a reminder on their calendar 7 days from the initial click.

The actions required from buyers

As an owner of an iPhone or iPad seeking to purchase an app or in-app content on your device, you come across the developer’s link indicating better prices on their website. Upon clicking the link, you are directed to a page offering the option to pay for the app immediately or after 7 days. Simply save the landing page in your browser and revisit it after the 7-day period for the discounted price. Set a calendar reminder and return to the saved browser tab.

It’s crucial not to go back to the app and click the external link again, as it might likely initiate another 7-day waiting period.

Why it won’t work

As evident, there exists a method to acquire more affordable apps, but it demands additional effort. This involves the developer’s task of creating informative pages and the buyer’s patience during the waiting process.

Addressing the waiting aspect first, it’s impractical. If you’ve successfully persuaded me to purchase an iPhone app or in-app content, I want it immediately, not in 7 days. I’ll make the purchase right away and will not wait. If, by some chance, I do manage to wait, there’s a risk of forgetting about it or inadvertently repeating the process by clicking the app link again.

For developers, ensuring a sale at a price comparable to the App Store involves extra effort. This is particularly true if they intend to pass on most of the 30% savings to buyers, which I doubt many developers will do. It’s not about greed; developers now have to cover transaction fees and invest in customer support.

I can envision a situation where certain developers opt to retain a significant portion or the entirety of the 27% fee for themselves, especially if they successfully persuade buyers to make payments for their apps seven days after clicking on their iPhone.

Is there a way for Apple to simplify things for everyone? Absolutely, they could. They could permit iPhone sideloading, third-party app stores, and third-party payments globally, putting an end to the PR challenges. Many, like myself, would likely choose the Apple approach. However, Apple seems inclined to prolong this unnecessary conflict as much as possible.

The promising aspect is that we will soon witness what an iPhone supporting sideloading looks like, thanks to the EU’s Digital Markets Act (DMA). Apple is required to enable this feature in the first week of March.