If you spend 200 yuan on an in-app service on an iPhone, how is this amount split between the developer and Apple?

The answer is straightforward: Apple takes its cut first, and only the remaining amount goes to the developer. This commission rate stands at 30% for standard enterprises and 15% for small developers, a fee widely recognized in the industry as the 'Apple Tax.'

Remarkably, this rate has remained largely unchanged since the App Store's inception in 2008.

Back then, Steve Jobs succinctly justified the rate: Apple provides developers with a platform that reaches hundreds of millions of users worldwide, attracting new customers. Charging a 30% commission is a fair return for the platform's value.

In an era when smartphone apps were scarce and developers had limited bargaining power with carriers, Apple streamlined app distribution through a unified store. The 30% rate encompassed a bundled price for channel fees, payment processing, and trust endorsement.

However, after more than a decade, the rationale behind this rate has lost some of its persuasiveness.

A commonly cited comparison reveals that credit card networks typically charge an average transaction fee of around 3%, while third-party payment processor Square's rates range from 2.65% to 3.4%. From a pure transaction processing cost standpoint, a 30% fee far exceeds what is considered reasonable.

What Apple truly offers is not just a payment gateway but exclusive access to the iOS ecosystem.

01 It Fuels a Highly Profitable Business

Apple's insistence on the 30% rate is deeply rooted in its immense profitability.

App Store revenue constitutes nearly one-third of Apple's services business, which has emerged as its most critical profit engine amid slowing hardware sales growth.

While hardware gross margins are constrained, services offer significantly higher margins, with App Store commissions representing the highest-quality and most stable revenue stream.

This creates a self-reinforcing cycle: iOS's closed ecosystem leaves developers with no alternative but to accept the rate, while the lucrative commission income reduces Apple's incentive to lower prices proactively.

Some analysts observed early in the controversy over Apple's commissions that the company had little reason to consider changing its model unless compelled to do so.

02 Who Shoulders the Cost?

For developers, a 30% commission is no trivial matter.

A Chinese developer's legal consultation app charges 200 yuan per hour on Android but increases the price to 248 yuan on iOS, as the Apple commission is factored into the cost during pricing.

This demonstrates that the bulk of the Apple Tax ultimately falls on consumers.

Developers cannot absorb this cost themselves and must pass it on by raising prices on iOS.

The extra tens of yuan you pay is essentially a premium for using the app on an iPhone.

03 Regulators Worldwide Are Pressuring Apple to Compromise

In 2020, Epic Games' Fortnite was removed from the App Store for attempting to bypass Apple's payment system, sparking an antitrust lawsuit that initiated a global challenge to the Apple Tax.

Regulatory pressure is most directly reflected in commission rates.

In the Chinese market, Apple's standard commission rate dropped from 30% to 25% in March 2026, while small developers' rates fell from 15% to 12%.

Image source: Internet

Apple also pledged that commission rates for Chinese developers would not exceed overall levels in other markets.

However, the controversy has not subsided.

In June 2026, 48 Chinese developers jointly filed a complaint with China's State Administration for Market Regulation, accusing Apple of discriminatory treatment. In markets like Brazil and the EU, Apple has opened up third-party payments, external links, and even third-party app stores, with combined rates as low as 5%.

In contrast, China only saw a reduction in IAP rates, with payment channels remaining singular, leaving developers with still-high comprehensive costs.

In other words, Chinese developers received a discounted single-choice menu rather than the buffet voucher available to developers in other countries.

04 The 30% Rate Represents the Price of Ecosystem Control

Apple's insistence on the 30% rate is not solely about the commission itself.

It upholds control over a closed ecosystem where payments must go through Apple, distribution requires Apple's approval, and pricing rules accept Apple's commission.

If this model is breached, Apple would lose not just commission rates but also pricing power and influence over iOS's commercial rules.

Image source: Internet

For ordinary users, much of the extra money you pay for digital services on an iPhone goes not to developers but to Apple for allowing the app to appear on your device.

Next time you see a higher price tag for an app on iOS compared to Android, the difference conceals the shadow of this 30%. #AppleTax