
UPDATE: I’ve been talking to more developers about this and lets just say that not everyone agrees with me. The message I’m getting is that while 30% seems like a lot, RIM’s margins with App World are going to be razor thin when they implement carrier billing. Carriers are going to want to take the majority of this 30%, if not all of it, and the lower revenue share may have been forced by the carriers themselves. While prices may go up in the short term to accommodate for this new revenue share agreement, prices may actually come down because more developers will see there is money to be made. More competition may ultimately drive prices down for everyone. Only time will tell.
As an update to the new App World agreement with vendors, that states RIM now take a 30% cut, putting them on par with Apple, and 10% less than Mobihand, I thought I would include the actual agreement itself.
It’s important to note that while this may have a negative impact on developers at first, rest assured they won’t be the ones to absorb this cost. In the end, it will be the user who will absorb this 10% loss in revenue. I’ve already spoken with several developers who have said they will be increasing their app’s price in App World to adjust for the loss. Considering App World has the most expensive applications compared to other smartphones, it’s a shame to know that these prices will continue to increase, rather than get cheaper.
Click through after the jump where we have the full App World agreement, complete with the new changes made and compared to the older document. In the below document, RED means that it was deleted from the agreement and BLUE means it was added.
Continue reading ‘The New App World Vendor Agreement Changes Mean Higher Prices’







