Apple Drops App Store Fees to 15% for All Developers Making Under $1 Million From App Store

[Spindel]

Summary

Apple today announced the launch of a new App Store Small Business Program that will see the Cupertino company lowering its App Store fees for small business owners and independent developers. Starting on January 1, 2021, all developers who earn less than $1 million from the App Store will pay 15 percent in commission to Apple, down from the standard 30 percent.

 

Quotes

Quote

All developers who earned under $1 million in 2020 are able to qualify for the program and the reduced 15 percent commission rate. New developers who join the App Store and create apps in 2021 will also qualify. Going forward, developers who earn up to $1 million in the prior calendar year will be able to participate.

 

As for subscriptions, developers who are eligible for the program will pay a 15 percent commission on subscriptions, even during the first year. 

 

My thoughts

Somewhere in the distance I hear Epic and Spotify screaming BBBBUT what a bout poor us!

 

Sources

https://forums.macrumors.com/threads/apple-drops-app-store-fees-to-15-for-all-developers-making-under-1-million-from-app-store.2269427/

[jaslion]

I mean this is only gonna encourage in browser app distribution more for the big bois.

[Video Beagle]

I wonder how they'll police this to keep some shady developers from just putting up a money grab app, then switching names over and over.

[RedRound2]

This is a step in the right direction. Lower the fees to legitimate users/developers working so they can make their ends meet. Floatplane can probably take advantage of this.

To be clear, there still needs to be exceptions case by case I feel, but taking a small cut as App Store and platform fees, in my opinion, is fair

[Curufinwe_wins]

2 hours ago, RedRound2 said:

This is a step in the right direction. Lower the fees to legitimate users/developers working so they can make their ends meet. Floatplane can probably take advantage of this.

To be clear, there still needs to be exceptions case by case I feel, but taking a small cut as App Store and platform fees, in my opinion, is fair

Thing is, Apple's legal case against Epic literally hinges on there being no exceptions and it being same for everyone, even though we explicitly already knew that was false (Amazon and Netflix already have lower rates).

 

So this will be interesting to say the least.

 

[RejZoR]

It's a step in the right direction. It's the small developers in startups that need a helping hand with lower fees, not mega corporations rolling in cash.

[Commodus]

Like Spindel suggested, I can't help but think this is a "your move, Epic" play in addition to being good for smaller developers. You really care about the revenue share for indies? Alright, that's fixed... but we also know this was mainly a campaign to boost Epic's profits.

 

This doesn't necessarily mean that Apple's new approach is the best one. Just explaining its possible thinking.

[Spindel]

And here is spotifys response to this

Quote

Apple's anti-competitive behavior threatens all developers on iOS, and this latest move further demonstrates that their ‌App Store‌ policies are arbitrary and capricious. While we find their fees to be excessive and discriminatory, Apple's tying of its own payment system to the ‌App Store‌ and the communications restrictions it uses to punish developers who choose not to use it, put apps like Spotify at a significant disadvantage to their own competing service. Ensuring that the market remains competitive is a critical task. We hope that regulators will ignore Apple's "window dressing" and act with urgency to protect consumer choice, ensure fair competition, and create a level playing field for all.

And this is epics response

Quote

This would be something to celebrate were it not a calculated move by Apple to divide app creators and preserve their monopoly on stores and payments, again breaking the promise of treating all developers equally. By giving special 15 percent terms to select robber barons like Amazon, and now also to small indies, Apple is hoping to remove enough critics that they can get away with their blockade on competition and 30 percent tax on most in-app purchases. But consumers will still pay inflated prices marked up by the Apple tax.

 
Link to article with some boho tweets from that mail app guy: https://www.macrumors.com/2020/11/18/app-store-fee-cut-criticized-by-major-developers/

 

 

[Trik'Stari]

I find it somewhat humorous that the App devs have the real power here, but don't seem to realize it.

 

If they all just simultaneously dropped Apple, it would devastate the iPhone ecosystem. Sure it would hurt the devs short term, but in the long run Apple would lose out eventually as sales would go down quarter after quarter. Sure Apple would just make their own native apps to compensate, but sooner or later they would just end up sitting alone in their walled garden.

 

A lack of apps is what killed the Windows Phone, I really wish the app devs would do the same to Apple. Because they deserve it, for so many reasons.

[captain_to_fire]

Neither Epic Games nor Spotify can be classified as small businesses or a startup, so Apple is basically telling these two "bitch better have my money, pay me what you owe me..."

[Bombastinator]

13 hours ago, Curufinwe_wins said:

Thing is, Apple's legal case against Epic literally hinges on there being no exceptions and it being same for everyone, even though we explicitly already knew that was false (Amazon and Netflix already have lower rates).

 

So this will be interesting to say the least.

 

Still does remain the same for everyone.  If you make more than a million a year the fee goes up. @Video Beagle makes an interesting point though it’s a problem I expect is already solved in some form or fashion.   I actually expected more tiers with under 1 million being even lower, but we shall see what happens.  Might have something to do with the aforementioned control system.

[Blademaster91]

2 hours ago, Trik'Stari said:

I find it somewhat humorous that the App devs have the real power here, but don't seem to realize it.

 

If they all just simultaneously dropped Apple, it would devastate the iPhone ecosystem. Sure it would hurt the devs short term, but in the long run Apple would lose out eventually as sales would go down quarter after quarter. Sure Apple would just make their own native apps to compensate, but sooner or later they would just end up sitting alone in their walled garden.

 

A lack of apps is what killed the Windows Phone, I really wish the app devs would do the same to Apple. Because they deserve it, for so many reasons.

I think it would force apple to charge developers a more fair fee, rather than give large companies a lower rate, but I doubt devs would drop apple because iphone buyers have money and are more likely to spend on apps. If apple would charge the devs making under 1 million a lower developer fee, like cutting it from $99 a year to $50 that would help more than just reducing store fees.

Also interesting how everyone was saying the 30% cut was good, now that apple is charging less its suddenly a step in the right direction lol.

 

[Brooksie359]

13 hours ago, Commodus said:

Like Spindel suggested, I can't help but think this is a "your move, Epic" play in addition to being good for smaller developers. You really care about the revenue share for indies? Alright, that's fixed... but we also know this was mainly a campaign to boost Epic's profits.

 

This doesn't necessarily mean that Apple's new approach is the best one. Just explaining its possible thinking.

Honestly I hate epic more than I hate Apple so I am totally fine with this. It's like a big middle finger to epic and they know it too. 

[pas008]

should be like under 500k/1m 15% but after 10 million the 30% should start dropping back down like 5% every 5million and stop at 15%

 

or they shouldnt be getting those corp tax breaks at all

[Spindel]

15 minutes ago, pas008 said:

should be like under 500k/1m 15% but after 10 million the 30% should start dropping back down like 5% every 5million and stop at 15%

 

or they shouldnt be getting those corp tax breaks at all

Why just why?!

[Bombastinator]

21 minutes ago, pas008 said:

should be like under 500k/1m 15% but after 10 million the 30% should start dropping back down like 5% every 5million and stop at 15%

 

or they shouldnt be getting those corp tax breaks at all

There was mentioned a possible policing issue.  Such a system would make that even harder.  I don’t know what or if controls are in place, but such will be needed and might preclude such a thing.

[pas008]

7 minutes ago, Spindel said:

Why just why?!

 

Just now, Bombastinator said:

There was mentioned a possible policing issue.  Such a system would make that even harder.  I don’t know what or if controls are in place, but such will be needed and might preclude such a thing.

should look at apples tax breaks and off shore shit they dont even come close to paying same percentages as small companies do

they didnt become the richest company just by microtransactions, platform fees, and devices

[Bombastinator]

Mispost

[Bombastinator]

6 minutes ago, pas008 said:

 

should look at apples tax breaks and off shore shit they dont even come close to paying same percentages as small companies do

they didnt become the richest company just by microtransactions, platform fees, and devices

Irrelevant.  I’m not going to make random assumptions about apples income.  It’s widely posted in any case. 

[pas008]

Just now, Bombastinator said:

Gah.  Mispost.  This was supposed to go in a thread about a guy having trouble with not seeing m.2 in bios.  No idea how it wound up here

cuz you like me

day 1 of quarantine for me

[pas008]

1 minute ago, Bombastinator said:

Irrelevant.  I’m not going to make random assumptions about apples income.  It’s widely posted in any case. 

how is it irrelevant?

[Bombastinator]

9 minutes ago, pas008 said:

how is it irrelevant?

You said “this thing should happen” I said whether it should or not there could be procedural problems that could keep it from happening.  You replied with an explanation of why you think it needs to happen interspersed with supposition.  Does nothing refers to nothing, adds supposition.

Edited November 19, 2020 by Bombastinator

[pas008]

2 minutes ago, Bombastinator said:

You said “this thing should happen” I said whether it should or not there could be procedural problems that could keep it from happening.  You replied with an explanation of why you think it needs to happen interspersed with supposition.  Does nothing refers to nothing, adds supposition.

where did you say procedural problems?

you just said irrelevant

i simply said this

23 minutes ago, pas008 said:

 

should look at apples tax breaks and off shore shit they dont even come close to paying same percentages as small companies do

they didnt become the richest company just by microtransactions, platform fees, and devices

 

[Bombastinator]

Just now, pas008 said:

where did you say procedural problems?

you just said irrelevant

i simply said this

 

In the post you originally replied to

[pas008]

1 minute ago, Bombastinator said:

In the post you originally replied to

if steam can do shit like it apple can do it too  considering they own the platform and have all the data at their finger tips