Apple reduces App Store fees to 15% for developers

Apple, on Wednesday, announced a 15% App Store cut in the fees for iOS developers. The company has reduced the commission rate.

According to The Verge, Apple’s long-standing reduction in commission rate on App Store is eventually here. And it seems like new developers will get many benefits out of it.

For small businesses, too, it will pave the way for fair earning shares. Initially, until now, the standard rate of the fee was 30%.

The implications of this new announcement by the California tech giant mean a lot for developers’ future. Especially those who are working on iOS devices and improving user experience daily.

App Store fees reduction and its impact on developers

The new change will allow any developer to qualify for a reduced App Store cut of 15%. And that will happen if he/she earns less than $1 million in annual sales per year from all their apps.

The tech giant also said that many iOS app developers should be able to qualify for this program from now on. However, it didn’t precisely say what percentage of its 28 million registered app makers would be eligible.

Further, Apple also didn’t reveal how its future revenue will be affected after this significant commission rate cut. The effect will take place in January 2021.

It also becomes important to notice this new change since the company gets a significant profit from digital services on the App Store. After the iPhones, it’s the next huge thing that generates revenue for the company.

Last year, the most valuable tech firm earned around $50 billion just from its app store services and sales.

On Wednesday, CEO Tim Cook, speaking on cutting the commission fee, described it as a significant move ahead. And that small businesses will benefit a lot from this change. Here’s an excerpt:

“Small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities worldwide. We’re launching this program to help small business owners write the next chapter of creativity and prosperity on the App Store and build the kind of quality apps our customers love.”

Apple’s upcoming plans for products and services

Meanwhile, along with App Store changes for developers, the company is also working on its other critical digital services.

Yes, products like the next iPhone 13, AirPods Studio, and AirTags are also on the release schedule. But offerings like the newly revamped Apple One bundle is a big step forward.

Initially, all the services were available individually to the iOS device users. But lately, Apple finally decided to change its game for the better.

Thus, it will be interesting to see how this “bundled package” affects the earnings and what the consumers can get from it to lower pricing and more features.

 

Image courtesy of BigTunaOnline/Shutterstock

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