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Breaking even on Apple's new 30% subscription tax | by Dave Schumaker
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Breaking even on Apple's new 30% subscription tax

I see a lot of people saying that in order for companies to break even after Apple's new in-app purchase / subscription policy (where Apple gets 30% of the cost), these companies should just raise their prices by 30%.

 

To say that betrays a basic misunderstanding of math. Check out this chart.

 

In order for a company to break even and make the same amount of money they are today, they need to increase their prices by ~43%!

 

See more discussion on gdgt.

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Uploaded on February 16, 2011