Apple is drastically reducing App Store fees. But only for poor developers

For developers making no more than $ 1 million a year, Apple would slash the commission in the App Store from 30% to 15%. In January 2021, the new rules will commence to run, but developers need to give Apple a request to compute the new commission. When the $1 million mark is surpassed, a return will immediately be made to a 30 percent commission.

Wednesday, November 18, 2020, 19:25 GMT

Help bad developers

Apple announced that its App Store would reduce its developer fees. It will cut it exactly half from the present 30% to 15% as part of its own small business assistance programme.

So Aside from selling the software itself or purchases within it, Apple would earned less money from any developer contract. The modifications are effective January 1, 2021, although it is not possible for all developers to rely on the goodwill of Apple.

APPEL’s latest terms only apply to developers with a gross turnover of not more than 1 million dollars per year in the Apple Shop (75,62 million roubles in the exchange rate for the Central Bank on 18 November 2020).

The breakthrough, The Verge writes, could impact the company’s sales adversely, but Apple fails to name the amount it expects to lose after the decreased commission has been implemented. The App Store made sales of 50 billion dollars at the end of 2019.

Challenging conditions
Apple did not exactly say how many developers could qualify for the new payment terms as of 18 November 2020. The App Store currently has over 28 million smartphone developers registered in 227 countries, who are said to have an impact on the vast majority of the updates.

She also did not mention whether, aside from the annual earnings, the current laws had any other limitations prohibiting a cut in commission.

The latest commission will be operating in semi-automatic mode in the App Store. A significant issue. This means that developers need to apply a suitable application and can then then receive this application in order to turn to it. Simultaneously, if their sales in the Apple Store reach 1 million dollars a year, they immediately revert to the previous 30 percent.

A developer who enters the scheme at the beginning of 2021 and receives more than $ 1 million in the middle of the year will have to pay a commission of 30 percent by year-end. The 30 percent will apply in 2022, but in 2023, the developer will be liable for a cut once again if sales are below the $1 million mark.

Potential drop
The business said in December 2020, a month before changes to the App Store rules took effect, it expects to publish more updates about its new initiative. The location is also likely to influence the willingness of developers to minimize the commission – the organization is notorious for its not very loyal approach to developers in Russia.

In April2019, for example, undercode announced that some of the Russian iOS app developers were not compensated for several months by the company. The Apple Search Ads for Russians closed in December 2018, selling ads in the App Store search. Apple clarified the restrictions imposed by new Google Tax’ reforms which came into effect on 1 January 2019, i.e. a 20 percent rise in VAT paid by the Russian firm.

What would have been a precondition?
For several months, business committees have been debated around the globe. It all began with a controversy that broke out precisely because of the high commissions in the marketplaces, as stated in Epic Games, between video game developers Epic Gaming and Google and Apple. August 13, 2020 has launched the confrontation – Epic Games is providing consumers with the latest iOS and Android payment network (Epic direct payment). Today is one day. In the famous free-to-play title, the platform is integrated in Fortnite. When it was released, Epic Games did not give users to pay over-paid Google and Apple chips in the game, but to pay the developer directly and to save up to 20%.

The Apple App Store and the Google Play Store rules are flagrantly being broken and Epic Games is introducing a new payment scheme without Apple and Google being told. Apple and Google have also pulled Fortnite from their store catalog at the same time and nearly simultaneously, and Epic Games are suing automatically as if they were planning to reach such a result. Her complaint lasted 62 pages.