Thursday, November 19th 2020

Apple Reduces App Store Commission to 15% for Most Developers

Apple has recently announced the App Store Small Business Program which offers a reduced commission rate of 15% down from 30% on paid apps and in-app purchases for developers who make less than $1 million USD annually through the store. Starting January 1st, 2021, developers making less than $1 million annually will automatically receive the 15% commission rate. When a developer makes over $1 million they will start paying the full 30% commission rate on all revenue. This move from Apple is squarely targeted at appeasing regulators and the wider developer community who have criticized the company for their large commissions.
Source: Apple
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15 Comments on Apple Reduces App Store Commission to 15% for Most Developers

#1
Exyvia
"full 30% commission rate on all revenue"

What? Why isn't it like Tax brackets.

Better to earn $999k than $1 Million.
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#2
Uskompuf
Exyvia
"full 30% commission rate on all revenue"

What? Why isn't it like Tax brackets.

Better to earn $999k than $1 Million.
I should note that this isn't explicitly stated but seems to be indicated, Apple will share more details in December where I expect they will clarify.
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#3
matar
Imagine earning $1,010,000 :roll:
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#4
techisfun
Apple is only dominant because Android is garbage. The Android platform is so bad that people don't even consider it a competitor to iOS.
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#5
Vayra86
They can feel the heat. But they're not done yet, and the EU isn't done either. I also don't see how this changes anything wrt the power these corps hold over us.

Meanwhile, Sweeney just popped open a champagne bottle.
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#6
ZoneDymo
Now if only companies would come together and like...not...support Apple at all anymore.
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#7
pat-roner
matar
Imagine earning $1,010,000 :roll:
Then you pay 15% on the first million, and 30% after that...
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#8
techisfun
ZoneDymo
Now if only companies would come together and like...not...support Apple at all anymore.
According to Epic and others, there's no alternative. Android isn't a viable alternative to iOS because most of the Android phones sold are junk.
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#9
Just Some Noise
techisfun
Android isn't a viable alternative to iOS because most of the Android phones sold are junk.
There come the fanboys. :kookoo:

The thing that makes iOS the most valuable platform for developers, is the fact, that more people are willing to buy an App. And of course also pay for a longer period of time i.e. subscriptions, add-on and more. It has NOTHING to do with the quality of the phones.

And of course, why would they just make an app for android and then leave the ios crowd (and more important, money) behind?

And just for clarification, i have both, an iPhone 12 Pro Max and a Xiaomi Mi 10 Ultra.
Posted on Reply
#10
Vayra86
techisfun
According to Epic and others, there's no alternative. Android isn't a viable alternative to iOS because most of the Android phones sold are junk.
Wrong. Android is not a viable alternative because its more of the same, rather than being different from Apple.

Google has a similar policy except they don't lock the door, they just let you figure out where to find the keys yourself (outside the play store) and they also straight up tell you 'you've now got a potentially compromised home'. Google style eh, you can happily click yourself to oblivion while Google follows you around, recording every step of the way and creating new business out of it ;) When you get too popular, you get bought up or your idea copied.

Apple just says 'Nope, you're not getting keys at all unless you pony up the money'.

Both companies only give you the actual keys if you pay up. These walled gardens are fine as long as they're insignificant, but apps are now, alongside the browser, the primary information source on a phone. They're vital and since mobile phones are considered vital as well for a vast majority of people, this is now too big to ignore and governments will be moving (and are moving as we speak) to kill this business model.

Sweeney understood this years ago and also saw that the principle applies, by precedent, to other digital distribution as well. These platform services are going to take a major hit because they all disturb the way markets should work. Developers are left hanging, customers are left hanging, all just to pay 30% fees to companies who just move around data. Its not right and it won't last.

Note the same stuff applies to.... Facebook and most other social media platforms, Uber, fast food order platforms, Amazon, etc etc etc. They're all keen on sharing, and very good at listening. They're also the root of most of society's current issues and kill entrepeneurship, unless you join them. Its a game of influence and control and we need to turn it around fast.
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#11
techisfun
Just Some Noise
The thing that makes iOS the most valuable platform for developers, is the fact, that more people are willing to buy an App. And of course also pay for a longer period of time i.e. subscriptions, add-on and more. It has NOTHING to do with the quality of the phones.
I'll spell it out for you:

Developers don't support Android because they know the majority of Android phones sold are cheap junk, which means the people buying them have low incomes and can't afford to spend money on apps.

Apple is getting attacked only because Google and the Android OEMs are too incompetent to provide a viable alternative to the iPhone.
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#12
Vayra86
techisfun
I'll spell it out for you:

Developers don't support Android because they know the majority of Android phones sold are cheap junk, which means the people buying them have low incomes and can't afford to spend money on apps.

Apple is getting attacked only because Google and the Android OEMs are too incompetent to provide a viable alternative to the iPhone.
I know its hard to connect the dots, but give the above a little read. There is no point in spelling things out for people that are completely off the mark. All that ends up with is you being wrong again.

And that ends up with you not being taken seriously, the ignore button, etc. Welcome to TPU. This is not reddit.
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#13
windwhirl
matar
Imagine earning $1,010,000 :roll:
And you're like "Oh, F*** NO!" *cries*
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#14
Bruno Vieira
Some developers will just disable any in app payments if it hits mid-december. But the most sensitible solution is to tax 30% only after 1 million.
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#15
Caring1
Bruno Vieira
Some developers will just disable any in app payments if it hits mid-december. But the most sensitible solution is to tax 30% only after 1 million.
Apple doesn't allow in App payments, they want to control it through Apple Pay.
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