Steve Jobs Email Suggests In-App Subscriptions Don't Apply to 'Software As a Service'? - MacRumors
Skip to Content

Steve Jobs Email Suggests In-App Subscriptions Don't Apply to 'Software As a Service'?

014201 iap

Apple's announcement last week introducing App Store Subscriptions has generated a lot of controversy across the web. At issue is Apple's policy requiring publishers to also offer all subscriptions through Apple's In-App purchase system which gives Apple a 30% cut. Meanwhile, publishers are still allowed to sell subscriptions outside of the App Store (and keep 100%) but they can't undercut the App Store price. From the original announcement:

"Our philosophy is simple - when Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing," said Steve Jobs, Apple's CEO. "All we require is that, if a publisher is making a subscription offer outside of the app, the same (or better) offer be made inside the app, so that customers can easily subscribe with one-click right in the app.

While the wording of the original announcement was aimed specifically at content publishers, there has been growing concern that the terms don't allow for "software as a service" (SaaS) apps as well. These are apps such as DropBox and SalesForce that provide specific services to users for recurring subscription fee.

014300 item ss instapaper 500
Readability for iPad

The issue was brought to the headlines yesterday morning when Readability announced that their app had been rejected due to the new subscription terms. Readability offers a subscription service priced at $5 per month which offers the users to view clutter- and ad-free versions of online content for easy reading. They believe they were rejected due to Apple targeting software service apps and not just ones serving up content.

DaringFireball's John Gruber, however, interprets this rejection differently, and believes that Readability is simply a publisher model, and thus subject to Apple's new terms:

Maybe I'm missing something, but these guys claiming to be surprised and disappointed by Apple's insistence on a 30 percent cut of subscriptions when their own business model is to take a 30 percent cut of subscriptions strikes me as rich. And how can they claim that Readability isn't "serving up content"? That's exactly what Readability does.

But Readability is not alone in their interpretation. TinyGrab, a screenshot sharing service, announced today that they won't be pursuing their iOS app due to the restrictions surrounding the new subscription system. TinyGrab offers premium subscriptions which gives paying customers additional storage and capabilities.

We really want to be part of the app revolution on OS X and iOS but it looks as though that may no longer be able to happen, until Apple fix these issues and welcome us in again.

Finally, Marco Arment, the developer of Instapaper, also seems to interpret Apple's new policies as affecting software as a service. He asks if apps that support Evernote, DropBox, Salesforce, LinkedIn, and 37signals will have to be removed for not offering subscriptions as in app purchases.

014518 icons
SalesForce, Evernote, Dropbox icons

One MacRumors reader also had these questions and emailed Apple CEO Steve Jobs with these same concerns. He wrote:

Hello Steve,

As a full time iOS developer, I am concerned (and confused) withe the new App Store guideline regarding "Apps offering subscriptions" (section 11.12).

Most of the iOS apps I have developed, as a contractor for other businesses, have been free apps that had login screens to allow the user access to some amount of private data. and/or service. These businesses have all been well established companies that sell some kind of service to their customers (Software As a Service companies) and the iOS app was merely another "portal" for their users to access their data/services (in many times, in a limited i.e. "mobile" fashion).... for example; SalesForce. I am concerned that most of these businesses will choose to not develop an iOS app for their customers if the IAP & subscription policy was in place.

Would these type's of free apps be still be allowed in the App Store or will they now be expected to use IAP?

To this, Steve Jobs replied in his typically short and, unfortunately, somewhat vague response:


We created subscriptions for publishing apps, not SaaS apps.

Sent from my iPhone

On the surface, our interpretation of this response is that the new in-app subscription rules simply don't apply to Software-as-a-Service. And, if you review the new guidelines and press materials that Apple has released, all the context is specifically related to publishers of content.

Based on that interpretation, apps such as DropBox and even TinyGrab may not be subject to the new rules. Readability's rejection, however, shows there are some borderline cases where the line between publisher and service provider is a bit blurry. Hopefully, Apple will provide more clarity on this issue.

Related Forum: iPhone

Popular Stories

iPhone Duo Display Cracking

Apple Alerts Stores to iPhone Duo's Display Cracking Issue

Friday October 30, 2026 3:20 pm PDT by
In a memo shared with Apple Stores and Apple Authorized Service Providers this week, and later obtained by MacRumors, Apple provided technicians with guidance on how to diagnose and address the iPhone Duo's inner display cracking issue. If a customer reports the issue, Apple advised technicians to inspect the iPhone Duo and repair or replace it in accordance with their standard procedures....
iPad mini OLED feature 1

Apple Executive Comments on New iPad Mini Lacking 120Hz Display

Thursday October 29, 2026 1:47 pm PDT by
While the new iPad mini has an OLED display, the device does not support ProMotion, meaning the display's refresh rate is limited to 60Hz instead of 120Hz. ProMotion support would have allowed for the iPad mini's refresh rate to automatically adjust from 10Hz to 120Hz depending on the content being displayed, but evidently Apple has kept the feature exclusive to the iPad Pro among iPad...
Pinched iPad Mini

Apple Avoids Showing Pinched Fingers on iPad Mini Page in South Korea

Thursday October 29, 2026 11:52 am PDT by
In the U.S. and most other countries, Apple's website shows the new iPad mini being held by pinched fingers, but this is not the case in South Korea. The new iPad mini shown with pinched fingers on Apple's website in the U.S. On its South Korean website, Apple simply shows an image of the iPad mini on its own. The new iPad mini shown without pinched fingers on Apple's website in South Korea ...
Latest Stories
Nearly Every M5 MacBook Air Now $200 Off on Amazon
Nearly Every M5 MacBook Air Now $200 Off on Amazon
6 hours ago
Apple's HomeView Ships With Six-Month-Old Software
Apple's HomeView Ships With Six-Month-Old Software
8 hours ago
Three New iPads Rumored to Launch in First Half of 2027
Three New iPads Rumored to Launch in First Half of 2027
8 hours ago
Apple Offers Steps to Fix Daylight Saving Time Bug on Apple Watch
Apple Offers Steps to Fix Daylight Saving Time Bug on Apple Watch
12 hours ago
Apple Watch Ultra 4 Hits All-Time Low Price With Amazon's $99 Discount
Apple Watch Ultra 4 Hits All-Time Low Price With Amazon's $99 Discount
1 day ago
Reminder: Apple's Big Discount on Beats 360 Ear Cushions Ends Today
Reminder: Apple's Big Discount on Beats 360 Ear Cushions Ends Today
1 day ago
Here's a New Tour of Apple's HomeView Software
Here's a New Tour of Apple's HomeView Software
1 day ago
Apple Reveals New iPad Mini's Battery Capacity
Apple Reveals New iPad Mini's Battery Capacity
1 day ago
Top Stories: Apple's Big MacBook Pro, iPad mini and iMac Updates
Top Stories: Apple's Big MacBook Pro, iPad mini and iMac Updates
1 day ago
'Pluribus' Season 2 Reportedly Starts Production Today
'Pluribus' Season 2 Reportedly Starts Production Today
2 days ago
iPhone 18 Pro Sales Surge in China, Offsetting Decline in U.S. and Japan
iPhone 18 Pro Sales Surge in China, Offsetting Decline in U.S. and Japan
2 days ago
HomeView Software 27.2: Wallpapers, Control Center, and More
HomeView Software 27.2: Wallpapers, Control Center, and More
2 days ago
Apple Alerts Stores to iPhone Duo's Display Cracking Issue
Apple Alerts Stores to iPhone Duo's Display Cracking Issue
2 days ago
iOS 27.3 Will Enable These Apple Intelligence Features in China
iOS 27.3 Will Enable These Apple Intelligence Features in China
2 days ago
Apple Says iOS 27.3 Beta Coming Next Week
Apple Says iOS 27.3 Beta Coming Next Week
2 days ago
Apple's Flash Storage Suppliers Are Finally 'Getting Their Revenge'
Apple's Flash Storage Suppliers Are Finally 'Getting Their Revenge'
2 days ago
14 New Things Your iPhone Can Do in iOS 27.2
14 New Things Your iPhone Can Do in iOS 27.2
2 days ago
iPhone Duo Review: One Week Later
iPhone Duo Review: One Week Later
2 days ago
Samsung Mocks iPhone Duo Display Cracks in New Ad Campaign
Samsung Mocks iPhone Duo Display Cracks in New Ad Campaign
2 days ago
The MacRumors Show: OLED MacBook Pro, iPad Mini 8, and More
The MacRumors Show: OLED MacBook Pro, iPad Mini 8, and More
2 days ago
MacBook Pro With Touch Display: 15 More Details Revealed
MacBook Pro With Touch Display: 15 More Details Revealed
2 days ago
Russia Places Apple on State Surveillance Registry
Russia Places Apple on State Surveillance Registry
2 days ago
Halloween Weekend Brings Discounts on Apple Accessories and Pre-Orders
Halloween Weekend Brings Discounts on Apple Accessories and Pre-Orders
2 days ago
Apple Has Released More Than 25 New Products in the Past Two Months
Apple Has Released More Than 25 New Products in the Past Two Months
2 days ago
Local Code Launches as Free, Private AI Assistant Tool for Mac
Local Code Launches as Free, Private AI Assistant Tool for Mac
2 days ago
Apple Acquires Ascend.io
Apple Acquires Ascend.io
2 days ago
HomePod Mini 2 Launches Today: All the New Features
HomePod Mini 2 Launches Today: All the New Features
2 days ago
AirTag 2 4-Pack Drops to New Low Price of $69.99
AirTag 2 4-Pack Drops to New Low Price of $69.99
2 days ago
Rian Johnson's iPhone Camera App Goes Viral
Rian Johnson's iPhone Camera App Goes Viral
2 days ago
Where Did All the iPhone Duos Go? Mostly to Apple's Stores
Where Did All the iPhone Duos Go? Mostly to Apple's Stores
3 days ago