Sidebar Sidebar
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

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

Maximara said:
<snip>

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.
Click to expand...
I get $1,428,571 (1,000,000/.70) but yeah. By my calcs that puts another $214,286 into a dev’s pocket who earns the threshold amount (1,428,571*15%).
 
Last edited:
Yea, there are a lot of people who think this is great but how will it impact the security and stability of the App Store? Who’s going to be checking the rush of new developer’s who just want to disrupt and destroy with their malicious code? Hoping this is not the beginning of the end for the App Store as we know it.
 
  • Disagree
  • Like
Reactions: Okasian, freedomlinux, Michaelgtrusa and 2 others
Merode said:
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.
Click to expand...
Epic still loses. They are a huge developer and won't benefit at all from the 15% fee. Plus they say that they violated the agreement with Apple in order to benefit small developers.

Epic just wanted to make more money and they don't give a 💩 about other developers.

Consider they did not violated their contracts with Nintendo, Sony, MS (all charge the same 30% cut). Also Epic charges a 30% cut to developers to have their games in the Epic Store.
 
  • Like
Reactions: Michaelgtrusa and Maximara
gnomeisland said:
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.
Click to expand...
Yes this is my question. Is it 15% up to $1M annual sales and then 30% for anything over $1M? Or is it once a developer gets to $1M+ annual sales and stays there it’s 30% from the first dollar?
 
Great chess move. Epic never did it for the small developers, they just used them for their own cause. Apple just took the bullets out of Epic’s guns, in terms of winning the public (which is much more important than winning in court).

For those not prolific in percentages: It may be a 15% difference to the end user, but this will potentially DOUBLE the income of all small developers next year (assuming they don’t pass it on to the consumer, which I doubt many will, for exactly this reason).
 
Well its good that they dropped it. So many posters here were adamant that the fees should not be changed whenever a story of a lawsuit was posted. I don’t see many dissenters now? :D

That said they should drop the fee to 15% for everyone.
 
Yammabot said:
Yea, there are a lot of people who think this is great but how will it impact the security and stability of the App Store? Who’s going to be checking the rush of new developer’s who just want to disrupt and destroy with their malicious code? Hoping this is not the beginning of the end for the App Store as we know it.
Click to expand...

Why should it? Apple should continue as previous and accept the reduced profits. If Apple reduce existing app screening, they'll just be screwing themselves over.
 
It gives these small and independent developers a chance at least. Now... will Epic do the same in their stores for small indie developers? 😄
 
Rogifan said:
Yes this is my question. Is it 15% up to $1M annual sales and then 30% for anything over $1M? Or is it once a developer gets to $1M+ annual sales and stays there it’s 30% from the first dollar?
Click to expand...
Annual, excluding the Apple tax
 
Good news, seems like a reasonable approach to fix the issue. This won't impact the big players, but it will impact those that it matters to the most.
 
LeeW said:
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.
Click to expand...
Now the question is will Epic drop their lawsuit as they were claiming it was for the smaller guy, not themselves they were fighting. IMO that's what this is done for. If Epic doesn't drop the lawsuit they look like fools.
 
  • Like
Reactions: LeeW
silentdevotion said:
This is why developers fight, 15% is a lot more fair. Good move on Apple's part.
Click to expand...
In fact it’s probably a loss on its own and definitely when you factor in all the free apps or ad supported that do very little. Their profits came from volume. When the store was smaller their reports listed it as close to breaking even at 30%
 
millerb7 said:
Now the question is will Epic drop their lawsuit as they were claiming it was for the smaller guy, not themselves they were fighting. IMO that's what this is done for. If Epic doesn't drop the lawsuit they look like fools.
Click to expand...

They won't drop the lawsuit. Tim Cook won't get away with it if it can't innovate for Apple and deserve to get punished.
 
vicviper789 said:
Looks like I gotta make my app free once I hit that $999,999 cut off 😂
Click to expand...
You make $500k per month and you’re giving your app away for 10 months? Losing $5,000,000 a year in revenue just to save a $200k commission break? 🙂

There is a revenue band where it would pay to forego sales to keep the 15% break but it’s not as wide as you might think. Be sure that Apple knows exactly how many devs fit into that category. It really only those right around the revenue cutoff
 
  • Like
Reactions: chabig
You must log in or register to reply here.
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.
Top Bottom
Back