Skip to Content

Apple in 2011 Considered Collecting a 40% Fee From Some Subscription Apps

Apple once considered taking a 40 percent cut from some subscription apps, according to documents shared today by the House Judiciary Committee (via Bloomberg).

appleappstorefeesemails
Back in March 2011, Apple's services boss Eddy Cue emailed three other executives and suggested Apple should "ask for 40% for the first year only," but that a "few deals" needed to be worked out for Apple to "see what is right."

One of the executives, Jai Chulani, wrote back that Apple could be "leaving money on the table" asking for 30 percent in the first year of subscriptions.

At the time, the emails referred to apps that offered digital content like Hulu on the Apple TV rather than apps running on iPhone and iPad, though Apple had launched App Store subscriptions in February 2011.

Apple ultimately decided to take a 30 percent cut from subscriptions purchased through the ‌App Store‌, and later reduced that rate for longer running subscriptions. Today, when customers sign up for a subscription within an app, Apple collects 30 percent for the first year, and 15 percent for the second year and all subsequent years.

Apple CEO Tim Cook during his testimony at today's antitrust subcommittee meeting emphasized that Apple has not changed its ‌App Store‌ fees since the ‌App Store‌ launched, and has in fact lowered them, referencing the 15 percent cut.

Ahead of the antitrust meeting, Apple also commissioned a study suggesting Apple's ‌App Store‌ fees are in line with the fees collected by other digital marketplaces and service providers.

Popular Stories

tim cook data privacy day

Tim Cook Warned by CIA That China Could Move on Taiwan by 2027

Tuesday February 24, 2026 4:03 am PST by
Apple CEO Tim Cook was among a handful of top tech executives who attended a classified CIA briefing warning that China could attack Taiwan by 2027, according to a sweeping investigative report by The New York Times ($). The previously unreported briefing was apparently held in a secure room in Silicon Valley in July 2023. The meeting is said to have been arranged at the request of the...
iphone fold text

iPhone Fold Crease Measurements Revealed as Device Hits Production

Wednesday February 25, 2026 5:37 am PST by
Apple has submitted production line orders for its upcoming foldable iPhone, effectively confirming that the device will launch this year, claims a Chinese leaker. According to the Weibo account "Fixed Focus Digital," assembly lines recently received the orders from Apple, which has apparently allowed the leaker to learn the crease measurements for the device's 7.8-inch inner display....
Apple Announces Special Event in New York Feature 1

Apple Reportedly Plans to Unveil at Least Five New Products Next Week

Sunday February 22, 2026 9:48 am PST by
In his Power On newsletter today, Bloomberg's Mark Gurman said Apple will have a three-day stretch of product announcements from Monday, March 2 through Wednesday, March 4. In total, he expects Apple to introduce "at least five products." Subscribe to the MacRumors YouTube channel for more videos. A week ago, Apple invited selected journalists and content creators to an "Apple Experience" in...

Top Rated Comments

boss.king Avatar
73 months ago

30% is perfectly fair. 40% is not.
Can I ask you to explain how you came to that judgement? What makes 30 so much more acceptable than 40? Why not 25? Why not 60? Are you just drawing an arbitrary line in the sand because it's what we're used to, or is there some calculation you've run here?
Score: 58 Votes (Like | Disagree)
boss.king Avatar
73 months ago

because it's the industry standard that Sony, Nintendo, and Microsoft has adopted with their stores.
But it's the industry standard in part because that's where Apple set it. If they had originally been debating between 40% or 50%, would you be arguing that 40% is perfectly fair but not 50?
Score: 21 Votes (Like | Disagree)
japanime Avatar
73 months ago
Amazon takes up to 65 percent (yes, you read that right) from independent publishers of books sold through the Kindle store.

I'm not suggesting that by "only" taking 30 percent (or 40 percent) is by any means fair. But Amazon is getting away with highway robbery.
Score: 21 Votes (Like | Disagree)
Apple_Robert Avatar
73 months ago
Much ado about nothing, seeing how that did not come to fruition. Not sure why it is story worthy 9 years after the suggestion.
Score: 19 Votes (Like | Disagree)
LN3000 Avatar
73 months ago
I don't see how this is really much of a story. One person suggesting something doesn't mean it reflects company values. I could suggest Mickey Mouse becoming president, but that doesn't mean all of America wants Mickey Mouse to be president (although....)
Score: 13 Votes (Like | Disagree)
TheYayAreaLiving 🎗️ Avatar
73 months ago
Greedy Apple SMH!!!!!
Score: 9 Votes (Like | Disagree)