Apple revenue payouts

General (non-technical) Off-Topic
#1

Hi,
there might be a fair few that have gotten an Apple payout of revenues. I never looked at that because it did not really bother me in the past, because I was supposed to split revenues with the client when I got paid, I had to look at the same with a fine tooth comb.

I found the following.

  1. Apple pays only 60% instead of 70% on European deals, the reports indicate Customer Price : €0.79 proceeds €0.48 which is 60%

  2. I look at reports using Prismo and AppViz2, now I am unsure on how accurate these apps are, but they get the information from iTunes, downloading whatever reports are found on iTunes.

  3. If I made an app free on the 4th (Australia Date and time, and it is still 3rd in USA) Apple charges all customers in US the price of the app or when then app ceases to be free, it is charged to customers in Australia (while still free in USA) and the developer is billed as FREE, so they do *NOT* pay the developer.

It is unfortunate that a company that has the largest reserves of Cash in the world has accounting practices that are not only questionable but unethical too.

Is there anybody else that has experienced this kind of behaviour, or if you haven’t looked, could you have a closer look and share your experience.

cheers,

?:slight_smile: [import]uid: 3826 topic_id: 13663 reply_id: 313663[/import]

#2

Jayant,
I am also getting around 60% for Europe. It may have to do with currency exchange rate, not Apple. [import]uid: 63320 topic_id: 13663 reply_id: 50268[/import]

#3

It looks like that €0.48 that Jayant states above is before exchange. [import]uid: 31262 topic_id: 13663 reply_id: 50273[/import]

#4

Could the 60% vs 70% difference be because of VAT?

I agree with you wholeheartedly on #3 – if they charge the customer they *should* pass long to the developer their cut.

Jay
[import]uid: 9440 topic_id: 13663 reply_id: 50277[/import]

#5

Actually if you go into your iTunes Connect, view your app then look at the pricing matrix it clearly shows what you will be paid in each country. And to be honest I can’t find anywhere that says Apple will specifically pay you 70% on every purchase. They always reference that pricing matrix.

Regarding point #3, I started my app off free then changed it to pay. I received free downloads as well as paid purchases from the same country on the same day. In my case it seems that it switched over properly and began charging in all regions at the same time. [import]uid: 31262 topic_id: 13663 reply_id: 50275[/import]

#6

Jay may have a point. Europe includes all taxes in their pricing do they not? Unlike here in North America where it is tacked on afterwards. [import]uid: 31262 topic_id: 13663 reply_id: 50279[/import]

#7

VAT is at 25%, at least in Sweden it is. So basically for me this model apply;

My App Sales - Apple 30% = X-amount

X-amount - VAT 25% = Y-amount

Y-amount - Employment Fee 31.42% = Z-amount

Z-amount - Income Tax 34% = Left to pay the bills…

And yes, VAT is included in the price.

I remember reading a long time ago that the country of sale tax laws apply. [import]uid: 13560 topic_id: 13663 reply_id: 50287[/import]

#8

It is because of VAT. All EU sales go through Luxembourg where the VAT rate is 15%, then Apple take their 30% cut after that so:

Purchase price = 0.79

Ex-VAT price = 0.79 / 1.15 = 0.69

Take away 30% on that, so you receive: 0.69 * 0.70 = 0.48 [import]uid: 29384 topic_id: 13663 reply_id: 50291[/import]