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
15 Comments on Apple Reduces App Store Commission to 15% for Most Developers
What? Why isn't it like Tax brackets.
Better to earn $999k than $1 Million.
Meanwhile, Sweeney just popped open a champagne bottle.
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.
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.
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.
And that ends up with you not being taken seriously, the ignore button, etc. Welcome to TPU. This is not reddit.