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

[Canubis]

Smart move!

• really meaningful change for smaller and indie devs = up to 150k more revenue per year for them
• lots of sympathy for Apple in public opinion & dev community, helps grow their image as dev-friendly and community-focused
• relatively low cost for Apple vs. lowering fees for big guys like Epic
• it probably feels like a big stinkefinger shown to Epic by Apple executives

 

[Jury]

This is a catastrophe approach from Tim Cook and Apple. It's going to disincentive the developer to make less than a million from the app store revenue and the department of justice believes that it is not a solution to the problem which Apple does not address the core issues that violated anti-trust laws.

 

[Karllake]

Deleted

 

[cheesyappleuser]

Let's be honest here, Apple is positioning this to fend off the various actions and criticism against them, doing it in a way that it will cost them less. But, having said that, it's a big deal for the smaller developer, so it's a win. But they are not doing it by choice, its a forced action.

Despite that it’s a great way to solve things.
It also enables Apple to call the other big companies on their bs.

 

[IsaacM]

Good job. Apple is finally listening.

You can be a huge corporation and still have some principles and not be a money sucking soulless machine. It's incredibly attractive to customers to see your favorite company showing some humanity and sense.

 

[Karllake]

This is great. I’m a dev that doesn’t earn even close to that limit so very nice indeed.
Imagine getting near the end of the year and sitting at 990k income. Surely it would be better to pull the app and lose a bit to get the next year at 15%?
Wouldn’t it make sense to make the first 1m 15% and 30% for everything earned over 1m?

Unbelievable. Someone, who earns 999999$, is getting about 150000$ more than someone, who earns 1000001$ before Apple tax.

30% only applies above the threshold not unto it, if you earned 1000100$ you pay 150030$ not 300030$

 

[aidler]

Great news for all developers and customers! App Store fees are still very high but this is a step into the right direction.
Greetings to my friends who last time vehemently defended the crazy high fee of 30 % as totally normal. ?

 

[Shanghaichica]

Epic still wouldn’t qualify for this bwah ha ha.

 

[g.a.papavasileiou]

Great news!

 

[leman]

Imagine getting near the end of the year and sitting at 990k income. Surely it would be better to pull the app and lose a bit to get the next year at 15%?
Wouldn’t it make sense to make the first 1m 15% and 30% for everything earned over 1m?

I actually agree. Having a fee change so rapidly could wreck havoc on your budget.

 

[MacModMachine]

Now let’s see if Epic drop their legal battle, considering they claim they were only doing it for the ‘little people’, i’m not themselves. I doubt it.

such a great play though. your exactly right.

lets see what they do now...since the battle the whole time to for "every dev" big and small.

now it looks much different in court. looks like a company thirsty to make more millions from their millions. lets sell air and complain the profit is not high enough.

 

[Jessica Lares]

This is great. I’m a dev that doesn’t earn even close to that limit so very nice indeed.
Imagine getting near the end of the year and sitting at 990k income. Surely it would be better to pull the app and lose a bit to get the next year at 15%?
Wouldn’t it make sense to make the first 1m 15% and 30% for everything earned over 1m?

It is based on total profits from all your apps, so you couldn't do that.

 

[coredev]

Epic finally got what they wanted....oh wait they are billionaires, 30 percent cut is like 15 percent to them!

You don't understand the concept of percentages, do you?

 

[Forti]

I'm SOO GLAD to see that!!

Amazing <3. great news for me!

 

[PickUrPoison]

Well, you believe that, your choice

Well I certainly didn’t see any regulatory action that forced it, so yes, I’ll believe this voluntary action on Apple’s part was voluntary.

Apple being forced to change commission rates is about the least likely outcome from any conceivable regulatory action. States don’t step in to cut five or ten points from a company’s profit margin. That’s not a thing ?

 

[coredev]

Wouldn’t it make sense to make the first 1m 15% and 30% for everything earned over 1m?

The way I read it that's exactly how it's working in the first year.
In the following year, you pay 30% from the start.

 

[contacos]

That win goes to EPIC I guess

 

[xxray]

This should only encourage developers to invest into the Apple ecosystem.

 

[LeeW]

Despite that it’s a great way to solve things.
It also enables Apple to call the other big companies on their bs.

Absolutely, it's a win however concieved.

 

[jasonlasky]

Yay I’ve been advocating for this cut and would like it to start on Black Friday, or Cyber Monday, at the very least before Xmas and the last week of the year. Not just for developers but for Apple as they will compare this bumper New year sales to next New year sales and would be better off not appearing to have lower sales next year. Common, Apple bring it forward to Thanks Giving or at least a Merry Xmas. You really want to!

 

[screensaver400]

The way I read it that's exactly how it's working in the first year.
In the following year, you pay 30% from the start.

Yeah, that’s how I read it as well. That gives a strong incentive not to reach $1M.

Suppose in Year 1 you pay 15% and earn $1M. That implies your revenue was $1.17M.

Suppose in Year 3 you pay 30% and earn $1.01M. You’d need revenue of $1.44M—just to (effectively) break even.

 

[dz5b609]

Yeah, that’s how I read it as well. That gives a strong incentive not to reach $1M.

Suppose in Year 1 you pay 15% and earn $1M. That implies your revenue was $1.17M.

Suppose in Year 3 you pay 30% and earn $1.01M. You’d need revenue of $1.44M—just to (effectively) break even.

Developers who earn over $1 million will not be eligible, with the $1 million total calculated using post commission earnings that take into account total earnings after Apple's standard 30 percent cut. Developers earning more than the cutoff will continue to pay the standard 30 percent commission rate.

They've thought off that, it's 1 million after Apple's standard 30 percent cut (even though you might have the 15% cut), to prevent situations like that.

 

[breather]

Looks like Apple listened to the criticism and took it to heart. Good for them and good for the developers.

 

[himanshumodi]

Which is why you should never let up pressure on institutions - whether it's a corporate entity or a government.

This drop is not because of the magical "free hand of the market". It is simply under the pressure of scruity of anti-trust and judiciary frameworks and government pressure. And we will still continue to get innovations. A good example of markets and government meddling coexisting.

BTW, any revenue drop projections out because of this in 2021? Guess we will see it soon. Apple obviously would have already calculated this..

 

[deevey]

Epic still wouldn’t qualify for this bwah ha ha.

They could

....maybe for a few minutes