App Store return policy spells trouble for developers?
AppStore has changed the way SmartPhones work. It has opened up a huge alternate income source for manufactures and at the same time a great opportunity for developers. But a recently added clause to the Apple app store developer agreement is worrying many.
Apparently Appstore buyers can claim refund for an app upto 90 days from the day of purchase. This would require the developers to payback the amount received. But a problem arises here as Apple would refund the user 100% of the amount paid by them while they still have the right to keep their commission (Apple’s commission is 30% of App value). This means the developers not only refunds what he got (70%), but he will have to pay 30% to Apple as well. You can call it a fine, but this really makes things tricky for App developers.
Extract from the contract:
In the event that Apple receives any notice or claim from any end-user that: (i) the end-user wishes to cancel its license to any of the Licensed Applications within ninety (90) days of the date of download of that Licensed Application by that end-user; or (ii) a Licensed Application fails to conform to Your specifications or Your product warranty or the requirements of any applicable law, Apple may refund to the end-user the full amount of the price paid by the end-user for that Licensed Application. In the event that Apple refunds any such price to an end-user, You shall reimburse, or grant Apple a credit for, an amount equal to the price for that Licensed Application. Apple will have the right to retain its commission on the sale of that Licensed Application, notwithstanding the refund of the price to the end.
Also see reports of App Store developers getting their payments late and underpaid aswell…
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iPhone / iPod touch downloads
ok im an apple fanboy, i admit, but this could be their worst call ever and i believe this will be chnged or revoked…think about apps that let you read book on your iphone, like twilight, and coraline, etc. within 90 a person interested in reading can read a book in its entirety. so when your done with reading the book you can get your money back? so its almost like piriting books…and other apps, like games…beat the game and get your money back, easy in 90 days…95% of app users will do this…i promise on that…i think apple will change the amount of days, more like 2-4 days, not 90…thats ridiculous, or just abolish this policy.
yeah thats rite and considering that people get bored of iPhone apps soon http://iphonehelp.in/2009/02/23/people-get-bored-of-iphone-apps-soon/ (According to the survey 70% users stop using an app just 48hours after installing it and only 5% of the users actively use an app actively after 20 days in installing it.) This is a real concern
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