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May 12, 2009 12:48 PM PDT

iPhone developers claim Apple not paying up

by David Martin
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May isn't shaping up as one of the best months for iPhone developers. A number of complaints have surfaced over the last week, from the usual App Store rejections (as in the SlingPlayer case), to developers claiming that Apple isn't paying them.

According to a TechCrunch report, a vocal group of developers is considering suing Apple for breach of contract after claiming to have not received payment for downloads of their applications.

You can see examples of complaints on developer forums at iphonedevsdk.com, where the posts indicate that some developers have not been paid for App Store sales from as far back as Fall 2008. In one instance, there are examples of e-mail between a developer and Apple. The developer's attempts to repeatedly contact Apple's finance department to complain resulted in a response from Apple claiming that the complaints "border on harassment."

It remains to be seen whether lawsuits will be filed by developers against Apple. But given Apple's outstanding revenue performance in a bad economy for the last quarter, the hugely successful iTunes App Store, and Apple's estimated $29 billion in cash reserves, we wouldn't be surprised if some developers find it hard to believe that Apple shouldn't pay them. Do you agree? Tell us what you think in the comments.

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by offthelotautodetailing May 13, 2009 4:46 AM PDT
Apple is overloaded with developers. I am sure that their Finance department can not keep up with the demand of developers as well. This is a problem, especially when you consider their fiscal earnings last year. What they truly need to do, is focus on that department. In cases like this, competition for developers to develop apps for the store is going to diminish. People don't just develop apps for fun most of the time, they need a fiscal return. Of course Apple is partying it up at the moment, but give your true developers some slack and pay them for what they turned your profitable business into.
*Obviously the app store is not the only reason they are profitable, and yes I like Apple, but they have so much work to do when considering this article.
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by Rolker May 13, 2009 5:35 AM PDT
There is no excuse for Apple's actions. The developers shouldn't care if Apple is "too busy" to pay them.
Imagine a case where it was the opposite, and the developers didn't pay money to Apple to put their software in app store. Apple would have sue them immediately, or ban them from the service.
But when you have the power, I guess you can do whatever you want.
by b_baggins May 13, 2009 8:07 AM PDT
More likely is the fact that these developers aren't selling very much and are running into Apple's policy of paying monthly, or when total payout equals something like $30.
by molotov May 13, 2009 12:39 PM PDT
"when you have the power, I guess you can do whatever you want. "

AMEN.
by sting7k May 13, 2009 5:26 AM PDT
I think something really needs to change in the App Store. I know Apple wants to let everyone in and make it super easy for anyone in their basement/garage to make a killer app. But in reality the sheer amount of content they have to deal with is clearly bogging them down. They may boast 35,000+ apps in the store, but the problem is at least 34,000 of them are not worth the space on my iPhone. It's a fact. Apple is so strict on the big players in many areas (ie SlingPlayer) and yet they let little stupid apps with no value go right through.

I can see why some payments might be missed, the volume is more than they can handle. I am very afraid that even though Apple took the extra year to scale up the push notifications that it is going to be crushed by so many little apps doing useless things and crowding out the ones that have actual value.

The App Store is nearly in a tail spin right now. There is just too much trash in it to navigate to find useful apps. Searching for apps is probably the worst search system I have ever seen, it brings up totally unrelated apps for what I am looking for. Something has got to change.
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by PaulMpanga May 13, 2009 6:15 AM PDT
You might not find something useful but other people do find them useful. As far as being flooded with apps is
concerned, apple should find ways to deal with all developers. Payments could be made automatic, we all know there are programs that can do that. Apple just doesn't want to pay...SUE them .
by b_baggins May 13, 2009 8:08 AM PDT
@Paul

A more likely explanation is that these developers are selling very few apps, and are running afoul of a policy that only pays out when the balance reaches a certain dollar amount.
by zhakidd532 May 13, 2009 6:52 AM PDT
I think Apple is trying to gain as much interest on the money as they can before they have to pay the developers. But if they're really failing to make payments from the Fall, that's a HUGE problem.
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by aqnguyen87 May 13, 2009 8:17 AM PDT
Over 35,000 apps, each needing to be paid to their developers monthly, along with the employees they already have in the US and around the world... eventually, they WILL pay up to the exact penny owed... and with that $29 billion cash reserve they have, I believe this is the year apple truly begins showing what they can do for businesses (ie. better corporate exchange support aka lotus notes, server support aka xserve, office networking integration aka true outlook sync, etc.). It will begin with Snow leopard and move fast forward from there... Microsoft can continue all the attacks they want (it'll end up being like the HIllary- Obama debates) Apple will stand tall, and show its responses with RESULTS rather then INSULTS... GO APPLE!!!...
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by BOTNET May 13, 2009 9:52 AM PDT
seriously, they owe money to developers and you say GO APPLE ? If I owe money to credit card company I get deliquent, pay hefty fees and get reported to bureau.

No company should be late with any invoice payments, period. Maybe next time instead of making fun of other companies in their TV commercials, Apple should pay bills on time.


I feel sorry for all developers and their hard work. Some of them don't have other income, this is BS
by jskrenes May 13, 2009 9:49 AM PDT
Let's just say your a developer that needs to get your paycheck from Apple...there's an app for that!
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by BOTNET May 13, 2009 9:52 AM PDT
I wish we could vote for funny comments !! This is brilliant
by dukelubas May 13, 2009 9:50 AM PDT
This is interesting because with billions of downloads from the app store, Apple has no problem with immediately billing you for your purchase. Why isn't there one set time/day of the week for this?

Looks like their accounts payable department has a serious disconnect with their accounts receivable department.
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by dacopper May 13, 2009 10:17 AM PDT
Yeah, imagine eBay or Amazon Marketplace delayed payments for months, who in the right mind would be selling there... but than again, who in the right mind uses iPhone, right? ;)
by molotov May 13, 2009 12:45 PM PDT
I get charged the same day for my purchases, but they are lagging paying the developers. No excuse. This must be stopped at once. People expect Apple to be fair to every body and I want my software - if Apple wants to reach that 10 billion downloads anytime soon - they better start being fair - otherwise there will be no software to download; imagine; no baby shaker [thats gone already], no tank attack, no tap defense, no insane toleit, no jab jib, no smoking, no partying no stantinding around and looking cool while faking an incoming phone call to your Touch! This is brilliant and will go away unless Apple does their job.
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