How does Apple's App Store work?

The Apple App Store is an online marketplace where applications (apps) developed for Apple's iOS and macOS platforms can be uploaded by developers and downloaded by users. There are several aspects of how the App Store operates:

1. Trademark and Concept: The term "App Store" was coined by Apple. It involves more than just a combination of the words 'app' and 'store.' In the context of Apple, "App Store" is not a physical store but a digital platform where applications are distributed. The usage of the term "App Store" faced legal scrutiny but was defended successfully by demonstrating that it is associated specifically with Apple and not a generic term 1.

2. Operational Dynamics and Adjustments: Apple continuously assesses the App Store's operations to respond to various pressures and criticisms, particularly concerning its market dominance. There have been discussions regarding fee reductions for small-scale developers and increased transparency, which indicate Apple's proactive adjustments in response to market and regulatory dynamics. Moves like reducing fees from 30% to 15% for developers with under a million dollars in revenue illustrate Apple's efforts to address concerns related to fairness and competition 2.

These elements highlight the adaptive and proprietary nature of the App Store, influencing how developers distribute applications and how consumers access them.