Apple Shares Praise From Developers Happy With 15% App Store Fee Cut

[Maconplasma]

This commission cut comes right at the same time Apple is releasing their new M1 Macs.

Apple is incentivizing new developers to enter the App Store market who were previously on the fence. Now, those developers will have to purchase a Mac in order to develop apps for the iPhone and iPad.

Ha, did you make all this up? Nobody is on the fence about coding for Apple's products be it iOS or MacOS. People are jumping at the chance. That's why thousands of developers are getting exposure on the App Store everyday. Apple is damn near the richest company worldwide. People are not "deciding" if they want to code for Apple or not. It's not like Apple has to beg for developers, so that theory of yours about the 15% cut is nonsense.

With the new M1 chips designed in house, Apple no longer has to give intel a cut, right at the time when a bunch of new developers are buying Macs.

Apple buys the processors from Intel just like the buy the screens from LG and Samsung. It's a standard purchase order. For the M-series processors Apple also has to spend money creating their own chips plus R&D and distribution, so it's not like they are saving a ton of cash.

Pretty smart move. Incentivize developing apps which incentivizes Mac sales.

Uh do you think we are still back in year 1998 when Apple was praying for Mac sales? Today it's an automatic buy for millions of consumers now and very few people outside of the tech bubble even know anything about the new Apple silicon.

 

[rafark]

can’t wait until developers complain 15% is too much in 10 years

It’s already too much, but it’s a step in the right direction.

 

[4jasontv]

The real irony to me is that the reason that the large companies are so pissed is that they don't need all of the support Apple gives because they have such deep pockets (they could build their own dev tools, pay for marketing campaigns, build distribution channels, etc.). Small devs are the ones getting the most out of their 30%, but now they don't have to shoulder so much weight! The app store's promotion of innovation continues!

Isn't this what Epic does? Their resources are free until your product makes $1,000,000 and then take 5%. They punish successful companies that have the resources to develop many of the tools Epic provides. The amount 5%, 15%, or 30% is irrelevant. All that matters is that the rich are punished for being successful.

 

[PickUrPoison]

Curious now what the justification will be to keep the 30% for larger companies? I thought the argument was that it was necessary to cover the costs of hosting/distributing/curating the app store content. How is that suddenly cheaper for smaller developers only?

It may seem like a smart move by Apple but I can see it backfire spectacularly with regulators.

If someone told you that Apple was restricted in what they could charge based on the underlying costs of providing the service, they were wrong.

Apple’s old rates were necessary to cover a ton of costs—those you mentioned and many others as well—plus profit.

Maybe Apple’s old profit margin was 80%, and now it’s 70%; maybe before it was 40%, now it’s 30%. Who knows?

Like you said, costs didn’t suddenly go down for smaller devs. But the revenue Apple will get from them will drop in half next year, so obviously profits will take a hit.

But I’m sure Apple will still be ok. Maybe they’ll increase large dev fees to something like 35-40% to keep their profits steady. Boy would heads explode around this forum 🤣

 

[teak421]

Isn't this what Epic does? Their resources are free until your product makes $1,000,000 and then take 5%. They punish successful companies that have the resources to develop many of the tools Epic provides. The amount 5%, 15%, or 30% is irrelevant. All that matters is that the rich are punished for being successful.

Yeah...but, if you sell on their store, that 5% for using Unreal Engine is waived...regardless of income made.

 

[PickUrPoison]

You pay per transaction, you won't get back billed for all your previous transactions if you go over a million, you just start paying 30% from then on, until the next year starts, then you're back to 15%.

Also "We treat every developer the same" is not the same as "We will treat every developer the same"

No, the next year starts at 30%. Your previous year has to come in under a million before you’ll ever get that 15% rate again.

 

[PickUrPoison]

Wrong !

If you pass it one year, the subsequent Year Everything Gets Tax'd @ 30% by Apple, starting from the very first sale that year !

Apple didn't completely think thru ALL the issues before announcing it.

The details will be Released on OR about Dec 13th, if memory serves me.

It seems you don’t understand the program. The 15% rate is only for devs who make less than $1,000,000. If you pass it, you’re no longer eligible for the program and are removed from it. Simple.

You aren’t eligible for the “special program” for those that earn less than a million the year before, if you don’t... earn less than a million the year before.

You can argue that Apple should offer some other plan, but the one they have is excellent. And amazingly easy to understand, as well 🙂

 

[pearvsapple]

Thank you Epic.

 

[PickUrPoison]

Isn't this what Epic does? Their resources are free until your product makes $1,000,000 and then take 5%. They punish successful companies that have the resources to develop many of the tools Epic provides. The amount 5%, 15%, or 30% is irrelevant. All that matters is that the rich are punished for being successful.

Giving smaller devs a break is punishing “the rich”? That’s hilarious!

 

[PickUrPoison]

Oh nice, how very Socialist of you. The indoctrination of the past several decades has apparently not been lost on Apple. App store fees are a percentage. Therefore the percentage should be the same for everyone. As a percentage, developers making more than $1M are still "paying" more in commission than those making less than $1M. What Apple's done here is create a new class structure.

LOL, in a few years when they realize the stupidity of this move, they'll lower the App store fee to 15% for everyone, and then you'll hear the unwashed masses bitch about Apple "giving a tax cut to the wealthy".

That’s not what Socialism is, fyi.

 

[PickUrPoison]

Why does the state and federal government tax progressively? We know the reason. That’s essentially what this is.

The famous bank robber Willie Sutton was asked why he robbed banks, and he reportedly answered “because that’s where the money is”.

 

[PickUrPoison]

do you have a link to this? I want to read it. thank you

The judge actually went way beyond calling Epic’s claims misleading. She said Epic was “not honest”, and didn’t stop there.

She then proceeded to call Epic liars: “You did something, you lied about it by omission, by not being forthcoming.”

 

[Maconplasma]

LOL, in a few years when they realize the stupidity of this move, they'll lower the App store fee to 15% for everyone, and then you'll hear the unwashed masses bitch about Apple "giving a tax cut to the wealthy".

I can understand you LOL'ing here. I did the same after reading your ridiculous nonsensical post. Stupidity and Apple are not worlds/names that intertwine. Apple is nearly the world's largest company and they didn't get there by stupidity so you should rethink that silly post of yours. SMH.

 

[MEJHarrison]

Actually I'm not missing the point. Actually you are. I mentioned Android because you wanted free tools. That's why I asked if Google offered free tools. You can tinker and play around and perhaps create an app for future coding on iOS. I think you took as me saying, "If you don't like Apple's way then leave and go to Android".

Fair enough. I absolutely took that the wrong way.

But the truth is you're not seeing the benefit that Apple is offering for a meezly $99/year.

In all fairness, I've paid the money in the past, so I'm aware of what you get. It's fantastic. If that was the only way to get my hands on Xcode, I'd probably do it again.

Sometimes you have to look at things from a business standpoint, not a consumer standpoint. If you were running a company I doubt highly that you would want to create free tools for tinkers to play around with when they are bored with absolutely no chance that the tinkerer will even create an app for all parties to make money. On that respect I don't blame Apple.

If that's the approach Apple wants to take, that's one thing. But they've not chosen that path. Instead they created free developer accounts. And give Xcode away to anyone who wants it. That's why I find it frustrating. In the first couple years, it worked great. Then little by little over the years, they keep adding addition restrictions.

Also, I disagree that's it's bad business for Apple. Not everyone works the same way. I don't start with the finished picture in my head. I get more and more creative as the foundation of what I'm building start coming together. I might start off with a simple idea. Some little thing just for me. Then I get sucked in and end up building something that's way better that what I envisioned going in. I've built things (on other platforms) and liked the end result so much I ended up releasing them for free because I was proud of my work. With iOS, I get started on an app idea and hit wall after wall after wall. I never get in that zone where the creativity starts happening.

To be fair, I've not noticed any similar restrictions on MacOS. So I just shifted my learning there.

 

[TracesOfArsenic]

Anyone one else feel like Apple did this just to rub it in Epic's face?

No, I think they did it because they currently face a lot of scrutiny in court.

 

[avonord]

I can see people trying to cheat the system by creating a different company for each app they develop, so that each company can be under the 1mil$ mark

 

[4jasontv]

Yeah...but, if you sell on their store, that 5% for using Unreal Engine is waived...regardless of income made.

That sounds like they are using their monopoly on developer tools to manipulate the retail market for digital games.

 

[firewood]

I don't know about the rest of you, but I would be ecstatic and jumping for joy if I had to let Apple take a 30% cut of my app revenue next year or the year after. Unfortunately my app sales are no where near close enough, so sadly I will be stuck with Apple taking only 15%. Drats!

 

[PickUrPoison]

I can see people trying to cheat the system by creating a different company for each app they develop, so that each company can be under the 1mil$ mark

Of course people will try to game the system 🙂 Dishonest people are everywhere. Hopefully Apple will bust them and charge them full boat!!

Possibly there could be a penalty tier, increasing the normal 30% commission to maybe 40-50%. It could be levied maybe as a 3 month penalty for each month the dev received fraudulent payments, so people might think twice before they are tempted to cheat. You always need some stick with that carrot 🤣

 

[developer13245]

Funny nobody realizes the absurdity of Apple creating a press release summarizing all the praise being lavished on them by other sycophantic companies. Apple has this very strange need to be praised and validated by others - even stranger when you consider these companies exist at the pleasure of Apple. Everyone knows Apple picks winners - this press release just shows how Apple expects their minions to kiss their ass.

 

[EricNau]

I’m getting really tired of Apple’s stance on this.

I’m “just” a customer, but even from my perspective it’s clear that Apple’s policy hasn’t sufficiently adapted to address the increased complexity of the app market over the past decade. I’m a fan of the closed ecosystem, and support Apple taking its fair share. But I think Apple has an overly-inflated view of their importance here, and are taking more than they’re entitled to as a result.

And as a customer, I’m starting to worry that Apple’s stubbornness is negatively impacting my experience. For example, I’ve become a huge fan of Hey email, and if Apple were to pull it from the App Store (feels like a very real possibility) I’d have no choice but to shop for an Android for the first time in my life.

There are additional concerns to be sure, like ensuring app developers are paid fairly (and they should be, of course). I’m simply saying: Apple isn’t even doing right by their customers at this point.

I guess you have to wonder: what’s Apple really selling these days? Is it iPhones or shares of APPL?

 

[Wanted797]

Imagine being the lawyer who gets to call out epic in the courtroom when they don’t drop their case despite “wanting to change the standard for the little guy” and getting to quote them....

*insert smug face*

 

[Abazigal]

No, I think they did it because they currently face a lot of scrutiny in court.

Which doesn’t make sense, because amongst the numerous accusations Apple may be having, 30% being excessive isn’t one of them (for the simple reason that it’s virtually impossible to quantify what a fair cut is).

This move is strategic genius for a number of reasons, but buying good graces from the judge isn’t something that Apple needs to stoop to.

And as a customer, I’m starting to worry that Apple’s stubbornness is negatively impacting my experience. For example, I’ve become a huge fan of Hey email, and if Apple were to pull it from the App Store (feels like a very real possibility) I’d have no choice but to shop for an Android for the first time in my life.

And if the Hey email app does ever get banned (again), then it’s really because its creator, DHH, has an overinflated opinion of his own importance and has gone one step too far in stirring the hornet’s nest.

 

[Unregistered 4U]

I don't know about the rest of you, but I would be ecstatic and jumping for joy if I had to let Apple take a 30% cut of my app revenue next year or the year after. Unfortunately my app sales are no where near close enough, so sadly I will be stuck with Apple taking only 15%. Drats!

Like yourself, I think I would quite relish having the “problem” of paying Apple 30% on my sales of 4 million a year.

 

[Unregistered 4U]

feels like a very real possibility

Why? Does the company owner intend to go against the rules? If so, then, yes, Android or some other solution would be your option. Not like Android is horrible, just different. AND less expensive with more features in some cases.

I guess you have to wonder: what’s Apple really selling these days?

Services. Everything they sell is to connect to their services.