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

[PickUrPoison]

So much for all those claims that Apple's running their App Store, approval, hosting and distribution of Apps was so expensive that they weren't raking in huge amounts with their 30% cut.

The App Store is a nice chunk of revenue, but it’s not a huge part of Apple’s overall business. But Apple wants a great developer ecosystem, and they’ve got it. And now it’s even better. Much better. Ask any dev that makes iOS and Android apps; iOS is a dream to develop for.

 

[User 6502]

About time. 30% was robbery, this is a more reasonable fee.

 

[iBluetooth]

Wow, as a developer this affects me a lot!

 

[PBG4 Dude]

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?

If you read the article, it explains the million dollar figure is net of Apple’s current 30% fee, so a developer has to go over 1.3 million in gross sales before the 15-30% increase would occur.

 

[Ubuntu]

It's a good move, especially because while it does benefit small businesses it distracts most users from the real issue; Apple using their gatekeeper role to keep their competitive advantage over other companies.

 

[Merode]

And people said Epic will lose. They've just won, this wouldn't happen without them in my opionon. They won't benefit, but most developers will.

 

[Maximara]

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.

I wonder if Apple can ask for a dismissal under that was then this is now. Note that is not really ex post facto per say but that is the closest thing I am familiar with.

 

[Maximara]

And people said Epic will lose. They've just won, this wouldn't happen without them in my opionon. They won't benefit, but most developers will.

Epic its still going to have to pay their lawyers and given their arrogance they will likely soldier on like Trump even though they have no case (I would say they had no case to begin with)

 

[Bandaman]

EPIC!!!!

Or well, not for EPIC. LoL.

They can stay banned forever as far as I’m concerned. They’re like 40% owned by CCP Tencent.

And people said Epic will lose. They've just won, this wouldn't happen without them in my opionon. They won't benefit, but most developers will.

Yes it’s a very weird situation. This was the “goal” of EPIC.

 

[UltimateSyn]

Sorry to you Devs who made $1,000,001 for that extra 15%!

In all seriousness though, awesome move by Apple.

 

[Nicole1980]

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

Yes they will. The FIRST million dollars they earn will ge taxed at 15%. So even a big dev like Epic will save $15,000 with this new system.

 

[Maximara]

30% only applies above the threshold not unto it, if you earned 1000100$ you pay 15030$ not 30030$

Your math is wrong. It is $15,015 (0.30 x $1000100). Back calculating comes up with a gross of $1,333,333.33 before the 30% level kicks in. Personally I think Apple had this planned for the M1 from the get to as it need everyone to get on the M1 developer bandwagon ASAP one the machines were in the hands of actual users.

 

[scupking]

Good job Apple!!

 

[ocanalix]

This is a bit out of touch. "Small business owners" are not those earning less than $1 million, it's those earning less than 100k.

I wish these fees were more gradual, and permanently, not just part of some "program".

 

[bobbie424242]

Great move. But does it make it OK to have milked devs 30% all these years, until it became untenable, which is apparently now ? Should we thank COVID-19 for this ?

 

[Rogifan]

Good on Apple for doing this. I think they should have done it for all developers but this better than nothing. And I’ll predict right now the app store and all Apple does for developers won’t suffer at all. This just means Apple will have to find other ways to grow services revenues.

 

[BBCWatcher]

We could see some developers choose to cut their app prices (or even zero them) at the end of the year in order to stay within the 15% commission tier. It sure seems like it would have been more sensible for Apple to reduce commissions to 15% on the first million for every developer.

 

[Apple_Robert]

Thank you, Apple.

 

[charlesdayton]

This is great news for Epic!!!! As they have portrayed themselves as a small underdog developer.

?

 

[Rogifan]

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.

I think it is too. It will be amusing to see all the comments praising this move when often times the comments were defending Apple’s 30% cut as justified.

 

[Maximara]

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 regressive 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.

The wording is bad because depending on how you read it that may not be true.

"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."

Since the earning are calculated as if the 30% was still there one would not hit the threshold until $1,333,333.33. I would have to read Apple's official statement to see which ( $1,333,333.33 or $1,000,000) is actually correct.

 

[MvdM]

Big developers now : it is not fair, we are being treated differently!
If it will ever change to 15% for all developers : also big developers: 15% is too much, this is not good for innovation (read : their wallets)

 

[vicviper789]

Looks like I gotta make my app free once I hit that $999,999 cut off ?

 

[ruka.snow]

As a developer in this bracket I earn more though I was quite happy with the 30%. It was a heck-a-lot more than the 70% or more before the AppStore.

 

[neuropsychguy]

But they are not doing it by choice, its a forced action.

It might be strongly influenced by anti-trust investigations but it's still a choice. Apple could have kept the fee at 30% and waited to see how investigations panned out. Actions before governments forcing changes (e.g., breaking up a company or capping fees at X%) are choices. Apple is a business and the leadership of the company tries to make decisions based on keeping in business and increasing revenue. There is always incentive in business decisions, just as there is always incentive in all our decisions even if we might not be aware of those incentives.