Apple will now give more money to developers making less than $1 million
Apple is marking down its App Store fee for some developers to 15 percent. The Cupertino-based company has started the App Store Small Business Program that subsidizes the App Store cut from 30 percent down to 15 percent for developers that have earned up to $1 million in profits during the previous calendar year.
The developers will enhance eligibility after fitting specific guidelines to avail the lowered fee on both goods and in-app purchases made through the App Store.
The recently launched App Store, Small Business Program, will get into effect on January 1, 2021, which indicates the developers who have earned up to $1 million on the post-commission support for this calendar year will be available next year to pay only half the commission fee.
If their incomes exceed the $1 million mark, after Apple has taken its 30 percent cut, in the year, 2020 will not be available for the decreased commission.
These developers will have to pay the regular 30 percent commission to Apple for the next year, as well.
But the developers whose profits have surpassed $1 million this year after Apple’s cut, see a drop in their revenue below $1 million in a future calendar year, they will match available for the cut in a commission that Apple has introduced under the App Store Small Business Program.
If they proceed to make less than $1 million finally, the commission will remain at 15 percent.
This will also change the subscription fees that customers pay. If the developer is spending less commission, it will require less for the subscriptions that customers buy using the App Store.
Usually, the price of some subscriptions is higher in the App Store than they are in the Google Play Store.
“Small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities around the world. We’re launching this program to help small business owners write the next chapter of creativity and prosperity on the App Store, and to build the brand of quality apps our customers love,” stated Tim Cook, Apple CEO.
“The App Store has been an engine of business growth like none other, creating millions of new jobs and a pathway to entrepreneurship accessible to anyone with a great idea.”
The change in the App Store fee policy is a welcome move for developers that have been feeling the stress of paying a 30 percent cut to Apple, appearing in fewer revenues.
Many companies recently decried Apple’s App Store policy of 30 percent cut, even calling it market abuse.
One of these companies is Epic Games, which reached as far as to sue Apple over its 30 percent cut policy. Apple had booted Fortnite from the App Store after Epic Games declined to pay the 30 percent commission to Apple. Even today, Fortnite is not available in the App Store, willing iPhone users high and dry.