Apple Announces Reduced App Store Commission for Some Developers
Apple today has announced a reduced app store commission for most developers who have their apps on the App Store. However, this comes with a certain condition that the developer has to meet to qualify, but it still feels like a step in the right direction as it certainly will help a lot of the developers.
As a part of a new program for small businesses, Apple has announced the new App Store Small Business Program. It will allow any developers who are earning less than $1 million in annual sales per year from all their apps to qualify for a reduced App Store commission of 15 percent, half from the 30 percent that Apple usually charges on all paid app revenue as in-app purchases.
Apple Makes it Easier for Small Business Owners by Reducing the App Store Commission.
As per Apple, many iOS app developers should be able to access this program. However, they didn't talk about the percentage of more than 28 million registered app makers who would qualify. Additionally, Apple has also declined to comment on how it will affect the overall App Store revenue.
As Apple is calling it, the new small business program is going into effect starting January 1st, 2021. Developers will be asked to apply for the program. Apple has talked about how they will be releasing more information about how this process is going to work, along with more information on the eligibility requirements and deadlines. All of this information will be made public in December, later this year. At the time of writing, Apple has not commented why they have not decided to enroll the developers into the program automatically. Still, it could be a possibility that Apple has decided against it to reduce any fraud or abuse of the system.
However, Apple has talked about a few rules, as well. As per the company, it will look into the developer earnings for the year 2020 to determine whether they are eligible or not. New developers can also go ahead and qualify right away. For the app makers who exceed the $1 million thresholds at any point in 2021, they will be removed from the program automatically and will be subjected to the standard 30 percent commission, and in case they fall back below $1 million, they will be put into the same program again.
This is what Tim Cook had to say about this program.
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 kind of quality apps our customers love. The App Store has been an engine of economic growth like none other, creating millions of new jobs and a pathway to entrepreneurship accessible to anyone with a great idea. Our 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.
Whether you agree with the policies that Apple has put in place or not, there is no denying that this move is certainly a good one as far as doing right by the small businesses are concerned, and I am looking forward to seeing how this works in the future for all the developers who qualify for this program.