Apple Drops App Store Commission to 15% for Small Developers

Originally published at: Apple Drops App Store Commission to 15% for Small Developers - TidBITS

At the start of 2021, Apple will open a new program that promises to slash the App Store commission for smaller developers in half.

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Great to see this.

Epic Games and Spotify are really P.O.ed that they are too big to qualify; they are the ones who started the big kerfuffle. I suspect that Mark Zuckerberg and Jack Dorsey getting their derrières hauled before the US congress last week while Apple Is biding time before it is seated on the podium is a contributing factor as well:

I’m astounded and oddly amused by how brazen Apple can be in these things. It’s a really smart move. Divides the developer sphere into two groups. One that’s huge and now will be much more friendly towards Apple. The other much smaller and finding themselves left with fewer allies yet paying just as much as before. However, since Apple’s bottom line is driven almost entirely by the latter group (it’s estimated just 2% of all devs make up the big sellers driving 95% of Apple’s App Store revenue [NYT is the actual source but I won’t link to paywalled content]), Apple will lose barely a dime over all this. In terms of goodwill, Apple could have hardly gotten more bang for buck with any other move. Crafty really. Chapeau! :laughing:

You have this backwards. The major league must continue to pay 30%; the minor league gets a 50% reduction to 15%:

He didn’t. He meant “huge” in terms of numbers, not revenue. The Times article says that the program covers 98% of developers, but they only contribute 5% of revenue(!)

It’s also, you know, a good thing to do, full stop.

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I think Apple should go with a simpler method of a 15% commission on the first $1mil revenue in a calendar year and then 30% for additional revenue. Much more straight forward and prevents companies from avoiding that $1M threshold.

Epic won’t be happy until Apple pays them to develop for the Apple platforms.

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This is true. But this is a good way for Apple to thumb its nose and shut Epic Games, etc. up about claiming to be the great big knights in shining armor fighting the evil empire to defend and protect the livelihoods of small developers who are suffering from the 30%. They now have less to whine about to regulatory groups.