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Unbelievable. Someone, who earns 999999$, is getting about 150000$ more than someone, who earns 1000001$ before Apple tax.
Did you ever pay taxes before in any capacity ? genuinely asking , because that is the most basic error ppl do when they first encounter the tax system , its not a diss even , it happens to most folks interacting with taxes for the first time.
 
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. 😁
It is totally normal lol. But it’s also nice that smaller—most, that is—devs are getting a break until they hit a million.

But hit that million, and from then on it’s 30% all the way, baby! Hell it costs 50% to get into Walmart, and Amazon takes a 70% cut of Kindle sales last I checked. 30% is a bargain, and devs that were around before iPhone know it.

A progressive commission schedule totally makes sense. I wouldn’t be surprised to see Apple waive the first $10,000 or $25,000 or $50,000 in fees altogether. A zero bracket schedule is the next frontier.
 
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Did you ever pay taxes before in any capacity ? genuinely asking , because that is the most basic error ppl do when they first encounter the tax system , its not a diss even , it happens to most folks interacting with taxes for the first time.
High schools should teach basic finance, including marginal rates. Budgets, investments, interest, compound interest, credit, mortgages, student loans, etc. It’s not all that complicated.
 
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Well I never! Unbelievable news!
I’m a developer, with a subscription model - and we’re just about to launch! 15% is higher than we’re paying now. But we might have to go back to the drawing board and possibly implement this.
Convenience/trust might be worth the extra cut!
I will say that I will check and buy an app through the App Store when I can. I know it adds frustration and cost to devs but it adds a lot to me as a user and greatly reduces friction in the purchase. 15% actually puts Apple below market pricing (I wonder if they'll now get hit with anti trust lawsuits by competitors about that!)
 
No, the commission rate only changes from 15 to 30% for sales going forward (once you hit the $1,000,000 payout threshold). That might be Feb, Dec or never. Each year you start over at 15%
My understanding is that you stay at 30% unless you drop below $1mil again. We'll have to see how it works in action but it seems pretty fair. I worry that Apple is glossing over the perhaps bigger issues of transparency and consistency in App Store review.
 
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Good move on Apple's part. 30% may have been a bit more reasonable in the very early days, but a cut like this has been long-awaited.
 
Holy ****ing crap! Apple, from someone who was really fed up with your most recent moves, I have to take everything back. What an epic move! This is probably the most community friendly thing someone has done since a long time, and a HUGE move towards making a project profitable! This is going to help me tremendously in the future, thank you so so much!!!!
 
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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.
Yes, but then it can go back down to 15% the second year following, if the $1,000,000 wasn’t reached in that previous year (the year that started back at 30%). At least that’s what I got from it.
 
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I will say that I will check and buy an app through the App Store when I can. I know it adds frustration and cost to devs but it adds a lot to me as a user and greatly reduces friction in the purchase. 15% actually puts Apple below market pricing (I wonder if they'll now get hit with anti trust lawsuits by competitors about that!)

It would truly be ironic if other companies sue to force Apple to reinstate its 30% commission because it makes them look bad.

My guess is that google will likely follow suit shortly after.
 
Now let’s see if Epic drop their legal battle, considering they claim they were only doing it for the ‘little people’, and not themselves. I doubt it.
Hahaha ! Well said. This is a very clever ( and welcomed ) move from Apple. I too highly doubt Epic ( and Spotify) were in good faith. They will have to come up with new reasons now.
 
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My understanding is that you stay at 30% unless you drop below $1mil again. We'll have to see how it works in action but it seems pretty fair. I worry that Apple is glossing over the perhaps bigger issues of transparency and consistency in App Store review.
You’re right, and I edited my original post. Thx for the correction 🙂
 
As a few have said, I don't think that Apple is doing this out of choice - they know that Washington is coming for them.

And of course, they want devs to port their iOS and iPad apps to the Apple Silicon Macs, use the App Store and use the combined multiplatform universal purchase option. Giving indie devs a 15% revenue boost feels like a good incentive for them to do that.

As Apple must be acutely aware of now it's making the transition to Apple Silicon - for a platform to flourish, it needs great apps - and Apple can't do all of that alone.

The biggest company in the world insisting on taking a 30% cut from indie devs to help meet that next $1T valuation milestone for Wall Street, didn't feel right at all.

Whereas Apple releasing hardware that is so innovative (the AS Macs of course!), to push the revenue needle, feels much more like the Apple I've admired over the years.
 
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Now all the Epic fanboys can take their whining about the 30% and shove it. They and Epic now don't have a case against Apple.

The "$1 million total calculated using post commission earnings that take into account total earnings after Apple's standard 30 percent cut" means the 15% cut end at a gross earnings of about $1,333,333.34.
 
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