Android apps at the top end of the Play Market can cost hundreds of dollars. With annual subscriptions and apps for business users sometimes coming at a significant cost, there is an established limit for the maximum amount that can be charged. This limit has now seen an increase.
At the outset, Google set the transaction limit to $200 in its app store. By the end of 2015, this limit was doubled to $400. Last week, at the Google I/O conference, the company announced that it’s raising this limit to $999.99. While high-priced transactions within apps or purchasing costly apps may be rare, developers now have the ability to charge this amount. Possibly, premium apps, developed as a status symbol for affluent users, may avail this opportunity. Corporate software developers and yearly-subscription corporate service providers may also benefit from this move.
Since 2015, both, the reach of Android as well as the assortment of Android-compatible devices have expanded. Over 3 billion users across the globe use Android devices monthly. This includes not just smartphones and tablets but also smartwatches, TVs and even cars. Considering this vast audience and wide variety devices, there will certainly be those who are willing to charge $999.99 for their products and others willing to pay this amount. Google has also expanded its financial tools in the Play Market. The option to pay for subscriptions on instalment has led to an 8% increase in the number of subscriptions and a 4% increase in user expenditure.
Lastly, it’s important to note that Google earns significantly from its app store too. Developers who earn up to $1 million annually pay a 15% fee for each transaction. Those whose earnings exceed $1 million need to shell out 30% of their revenue.
This post was last modified on 05/24/2024