From the Financial Times’ “Apple to halve App Store rates for small businesses” ($) posted Wednesday:
The iPhone maker said it would charge app developers 15 per cent commission, instead of 30 per cent, if they earned less than $1m in 2020.
Developers whose earnings later exceed $1m will be charged at the standard commission rate for the remainder of the year, but could re-qualify in future years if their revenue dropped below the threshold again, the company said.
“Small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities around the world,” said chief executive Tim Cook.
“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.”
But the move is unlikely to calm complaints from big developers, which are responsible for the majority of Apple’s App Store revenues.
My take: Pressure works. Apple had to give a little. Too soon to say if this is enough.
See Apple’s press release.
NOTE: This is not sarcasm.
No, I suspect the move does little to calm big developers complaints but the move I believe will be well received in the court of opinion.
This nation is built on the mom & pops and small businesses that need inducements and sometimes need more favorable treatment to flourish. This is a welcomed policy by Apple to facilitate start-ups and the little guys & gals to become establish. I never witness much sympathy in the “court-of-opinion” for the big players who are well on their way reaching for ever more success. I believe Apple may have nip this whole issue in the bud!
I don’t see this as Apple giving in since they didn’t reduce fee’s for the big developers, those “responsible for the majority of Apple’s App Store revenues.” I see Apple’s move as putting their money where their mouth is when T.C. said ““Small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities around the world,” said chief executive Tim Cook.“Small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities around the world.” Walking their talk is a practice Apple is known for.
I “@ Jerry” acknowledging Jerry addressed “But the move is unlikely to calm complaints from big developers, which are responsible for the majority of Apple’s App Store revenues” prior to me. I apologize for not making myself clear.
As I read this post, the only mention of caving is the headline and PED “My take: Pressure works. Apple had to give a little. Too soon to say if this is enough” which I responded to saying I don’t see Apple’s move as giving in to the big developers.
If anything, I see Apple’s move as the opposite of appeasing the big developer’s complaining. I can see them thinking “apple makes most of their money off companies like mine – but they give the discount to those they don’t make as much on?” If anything, that’s the reverse of g”caving” and not how discounts are generally done today.