Apple is Going to Cut App Store Commission by 15% for the Majority of Developers
The company has announced the changes to its App Store policy as of January 1, 2021. Now her service charge is 30% for everyone.
The App Store Small Business program will give developers who earn less than a million dollars yearly from App Store sales a chance to pay less. Apple says that that majority of iOS app developers should be able to access the program. However, the company declined to say what percentage of its more than 28 million registered app makers would qualify. Additionally, they did not specify how much of its App Store revenue would be affected by the reduced commission.
Beyond the iPhone, the App Store is one of Apple’s most pivotal businesses. It represents a pillar of the digital services strategy that Tim Cook has titled as the future of the company.
The new program goes into effect starting January 1st. Developers will have to ask to apply for it. It is possible requiring that developers enroll may reduce the potential for fraud or other abuses that could arise if the company auto-enrolled everyone below the threshold.
Apple says it will look at developer proceeds for the year of 2020 to determine eligibility. For those app makers that exceed the $1 million threshold at any point in 2021, they will automatically be removed from the program and get the standard 30 percent cut.
According to Tim Cook, "the App Store has been an engine of economic growth like none other, creating millions of new jobs and a pathway to entrepreneurship. The new program carries that progress forward — helping developers fund their small businesses, take risks on new ideas, expand their teams, and continue to make apps that enrich people’s lives".
Apple adds there is no one reason why it decided to launch the program now, and do not want to clarify whether the program had been in the works prior to the onset of the COVID-19 pandemic.