Changes in app store rates
Apple cuts App Store rates in half for a few but no, Fortnight isn’t returning After months of litigation, hard feelings and angry tweets, Apple has announced a serious change to its App Store developer program. rather than the quality 30 percent fee that it’s collected since the App Store launched in 2008.
Apple will now collect just 15 percent for many of the apps and games sold in the store. These new terms of the new the program will begin on 1 January 2021 are as follows:
• Existing developers who were making up to $1 million in 2020 for all of their apps, also as developers new to the App Store, can qualify for the program and therefore the reduced
• If a developer’s business falls below the $1 million thresholds during a future calendar year, they will requalify for the 15 percent commission the year after.
• If a participating developer surpasses the $1 million thresholds, the standard commission rate will
apply for the rest of the year.
• the prevailing subscription terms, which lowered the fee from 30 per cent to fifteen percent after the second year of a recurring subscription, remains in situ.
It’s not clear what percentage of the developers who sell apps within the App Store make quite 1,000,000 dollars, but it’s likely to be a small percentage of then two million apps that are sold within the store.
Apple CEO Tim Cook said the new terms will enable developers to “fund new ideas, expand their teams and continue to make apps that enrich people’s lives”. On annual sales of $999,999, as an example, a developer
will save nearly $150,000 under the new program. While the move is certainly welcome news for iOS developers, it won’t change anything about the fight between Epic and Apple. Epic makes
much more than 1,000,000 dollars a year on the App Store from Fortnite alone, and albeit they didn’t, Epic is unlikely to relent in its fight against Apple’s insistence that developers use its in-app payments to sell anything inside the app. The case is currently scheduled to resume next summer.
In a statement, Epic CEO Tim. Sweeney said, “This would be something to celebrate were it not a
calculated move by Apple to divide app creators and preserve their monopoly on stores and payments, gain breaking the promise of treating all developers equally.” Additionally, Apple is fighting the US Department of Justice in an antitrust case over monopolistic and anticompetitive practices concerning App