The end of Apple’s monopoly on the sale of apps for iPhone and iPad has led to the emergence of new stores competing with the App Store. And in particular Setapp, which offers a catalog of applications via a monthly subscription.
The world of mobile applications is about to experience a real upheaval! Apple, which until now jealously kept control over the distribution of applications on iPhones – which allowed it, incidentally, to earn a nice commission on sales – is forced to put an end to its fourteen years of monopoly . Indeed, the firm must comply with the new European law on digital markets, the Digital Market Act (DMA) (see our article). This law aims to push large digital multinationals to open up a little more and relax their rules. And among the constraints is the obligation to offer alternative application stores for the same platform. In other words, Apple has until March 2024 to open the iPhone and iPad to app stores other than the App Store, to which it has already agreed. A real revolution for users and publishers alike – even if the Apple firm imposes several conditions to maintain control!
Several companies are already preparing their weapons. This is the case of Microsoft, which should launch its own mobile applications and games store, the Xbox Store, in 2024 (see our article). We can also expect other big names in tech, such as the Amazon AppStore and the Epic Game Store. But other, smaller players are also on the starting line. This is the case of Setapp, a Ukrainian publisher of iOS and macOS apps via subscriptions. This one had announced the upcoming creation of its own application store for Apple mobile devices last August, highlighting a number of benefits for developers. In A press releasehe reiterates his arrival, this time imminent. “While this progress is encouraging, it is clear that the path to a fully competitive iOS market is still ongoing”nevertheless admits the developer MacPaw, at the origin of the Setapp platform.
Setapp: a direct competitor to the Apple App Store
MacPaw says its developers are already in the final stages of developing the beta version of the app store. The latter should be released in 2024, although he does not indicate a precise date. As a reminder, the publisher currently offers a subscription at $9.99 per month – with a one-week free trial – to have unlimited access to its catalog of applications for a Mac, another at $12.99 per month for one Mac and four iOS devices, and another at $14.99 per month for four Macs and four iOS devices. We can therefore expect similar prices for its new store for iOS. Setapp will offer a collection of varied mobile applications, ranging from productivity tools to lifestyle applications (lifestyle). It’s a bit like the Netflix of iOS in a way. Around thirty developers are already partners with the Ukrainian publisher, including Ulysses, Taskheat, NotePlan, Soulver, PDFSearch and CleanMyMac. MacPaw indicates that it is in discussions with developers whose apps are already present on its platform. However, he is also willing to collaborate with other developers.
Setapp highlights several advantages compared to the Apple store, particularly in terms of developer remuneration. If the App Store has until now taken 15 to 30% of the revenue generated by third-party developers, the Ukrainian publisher offers a slightly lower commission rate. Thanks to a bonus system, they will be able to keep up to 90% of sales. “This model ensures that developers receive a fair share of subscription revenue based on usage and popularity, creating a mutually beneficial ecosystem that supports innovation and provides users with a diverse range of applications from first order“, he explained in August in a press release. However, the fact that Apple has decided to lower its commission to “only” 17% (10% for small developers) makes its proposal a little less attractive. MacPaw also promises to relieve them of the commercial aspects and distribution so that they can concentrate on their work. Developers wishing to join this project can already join the waiting list.
Note that, even when the applications are distributed outside the App Store, the Cupertino company will continue to charge commissions. “Developers of iOS apps distributed on the App Store and/or an alternative app store will pay €0.50 for each first installation of an app over a year, once one million installations are exceeded”explained the firm, arousing the anger of many developers, including Microsoft and Spotify.