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2011

BIGGER APP REVENUE CUT FOR WINDOWS APP DEVELOPERS

December 8, 2011 0

App developers have always been in demand, but the revenue cut they receive was a matter of concern. But things seem to be switching for their good. However, the efforts to be incorporated would even be more. Microsoft, the software giant has opted to lure app developers to increase its app base. A smart move, but a smarter thought.

Microsoft knows that Apple till now has been rewarding its developers with a big cut as compared to anyone else in the field and this has motivated the developers to come up with a number of interesting apps for the upcoming Windows Store. Microsoft will need that kind off kick start to help itself in cementing its position in the tech world.

Microsoft has divided the ‘cut-ratio’ in two parts. The company noted that if the software or the app has made at least $25,000 in revenue, then the software giant would give developers an 80 per cent cut. If the Windows app has not been able to achieve the threshold limit, still the developers will enjoy a 70 per cent cut, which is equal to what Apple now gives to its developers, that is 70 per cent of the revenue that apps bring in.

Ted Dworkin, partner program manager for the Windows Store, said in a blog post, “We intend to offer the industry’s best terms, so that the best apps make developers a lot more money on Windows than on any other platform.”

Microsoft knows that its competition is with the likes of Apple and Android, who have well established themselves and now are earning on the benefits they have worked hard for. Luring developers with financial incentives is a good trick and it seems like the company will earn early maturity with it.

In case of Apple, its iPhone and iPad success majorly depends on the app store, which has a healthy store, full of millions and millions of apps. Android market even has countless apps, but it lags the ship because of two major disadvantages. One is the cut it offers to its developers and the other is quality. App store is a sophisticated store with hardly any spammy app, whereas Android market has a number of apps which are spammy in every section. Again, Microsoft will have to work on the latter too, if it wants to guarantee success.

 

Talking about the collection, Apple and Android have a number of apps of every genre, which makes its collection look green.

Citi Investment Research analyst Walter H Pritchard stated that he was not surprised with the move Microsoft has opted for, which is to use the financial medium to increase the quantity of Windows apps. The reason behind it is that the revenue from the Windows Store will not be that important, but setting up its Windows platform.

IDC analyst Al Gillen wrote, “Windows 8 will launch with split success.” He added that Windows 8 can be consumed as “largely irrelevant to the users of traditional PCs,” expecting that “effectively no upgrade activity from Windows 7 to Windows 8 in that form factor.”

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