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.