If you want to distribute a mobile app to potential end users, typically there is no way around the Apple App Store and Google Play Store. But what exactly is required to list and distribute an app in the two largest app stores? And: What does it all cost? We explain this and much more in this article.
The App Store Duopoly
If you want to download an app to your smartphone, whether it's an iPhone or an Android device, there's a high chance you'll open the App Store or Google Play Store. Aside from smaller storefronts of certain smartphone manufacturers like Huawei, these two large stores have effectively had a duopoly on the app market since the beginning. There's practically no getting around them when downloading a mobile app. On Android devices, there is theoretically the option to obtain and install apps directly from the internet (outside of the Google Play Store or other closed ecosystems), but this involves opening security restrictions on the device. And even though Apple is currently preparing for a similar opening of iOS due to new EU regulations, most users still end up in the App Store. In other words, if you want to publish an app for end users and ideally make money with it, you are bound to the two major app stores.
Requirements and Guidelines
Both Apple and Google impose extensive requirements on apps to be published. So if you want to publish an app, you are not only tied to the two major players due to market conditions, but you also have to adhere to their rules. Both companies scrutinize every single app upon initial release and practically every submitted update. From experience, Google is far more lenient in these reviews, whereas Apple is much stricter, which can sometimes require two or even three attempts for an app to be accepted in the Apple App Store. Not least for this reason the Google Play Store has almost twice as many apps as the App Store. However, this does not mean that Google gives developers a free pass. There are also certain guidelines that must be followed here to avoid rejection of the app (possibly even permanent).
Therefore, the development and publication process of an app should ideally be carried out by an agency experienced in this field. For context: The App Store Review Guidelines from Apple are nearly 15,000 words long and cover every little detail from design requirements to technical conventions to conceptual constraints. Especially with the first, own app, it's easy to stumble over one of the many rules. Guidelines must be considered not only during development and publication but also in the conception of the app.
How Much Does Publishing Cost?
Without a doubt, the design and development process is naturally associated with the highest costs in an app. Nonetheless, you should not overlook the costs of publishing in the two app stores in your calculations. Again, the approaches of Apple and Google differ significantly. While Google requires a one-time registration fee of 25 USD for developers, which covers all publications in the Google Play Store and other conveniences, Apple is more expensive. With Apple, an annual fee of 99€ is due to keep the App Store account active. If the fee is not paid, the account and thus the placement of the own app in the App Store is deactivated.
Unfortunately, it doesn't stop at the registration fee – at least if you plan to make money with your app. Here, both Apple and Google again reach into the pockets of developers. While Google holds onto a more or less fixed fee of 30% on all in-app purchases, Apple offers the option to apply to have the fees (which also amount to 30%) reduced to "only" 15% up to a maximum turnover of 1 million USD (more on this below). There are also various special regulations in both stores, for example, when reaching a certain minimum duration of a subscription.
Especially with Apple, there are options for certain types and sizes of businesses to have the registration fee and/or the fees for in-app purchases waived or reduced. This applies, for example, to non-profit organizations. Here, too, it would be best to seek advice from an experienced agency since the forms are sometimes (probably deliberately) difficult to find, and the process is lengthy. We have successfully accompanied this process with several clients – feel free to contact us.
Can the Fees Be Bypassed?
While the registration fees (except for some exceptions as described above) are practically set in stone, since the app otherwise won't reach interested users, one might think the fees for in-app purchases could be easily bypassed. Not a few publishers have come up with the idea to simply integrate their own billing systems – whether credit cards, PayPal, or others – into the app and bypass the 30% fees. Unfortunately, this typically runs afoul of the app guidelines of both stores. For most types of apps, implementing your own billing systems for the "protection of users" (sic!) is not allowed. Certain business models like delivery apps are an exception.
Perhaps you have noticed that you cannot purchase a premium subscription in Spotify's app. Due to this very regulation and the high fees, Spotify has deliberately removed this function from its own app. If users wish to purchase a premium subscription, they must do so via Spotify's website. The guidelines of the App Store even go so far as to prohibit pointing users to the fact that a subscription can be purchased on the website. This practice is currently a hot topic at the EU level and will likely have to be loosened by Apple and Google sooner or later. Until then, however: unless you're Spotify and can afford to distribute your products only outside of the app due to your market position, we'd advise against such a step. The lost number of paying users is likely to be greater than potential profit increases from bypassing the fees.
What Happens After the Release?
With the successful release of the app, the work is not over: both Apple and Google regularly update their guidelines and also set deadlines for existing apps to comply. Therefore, ongoing app maintenance is essential for any serious app project. Apps must also be updated to accommodate new operating system versions, screen sizes, etc. As an experienced and above all purely app-development specialized agency, we naturally support you in this process from A to Z and show you the challenges associated with your project in a non-binding initial consultation. So if you are looking for a professional app agency in Frankfurt or remotely, feel free to contact us.