In one of the major App Store changes ever made, Apple announced that the majority of developing third-party developers who publish apps and games in the App Store will see a decrease in Apple’s sales from 30 to 15 percent. The company calls it the App Store Small Business Programme, which aims to enhance its standing and anti-trust public perception while minimizing its own impact.
The program is opt-in and any developer with combined revenues of less than $1 million in the last year or any developers new to the App Store) throughout all their applications can apply for and accept them. The income measure includes not simply app purchases, but also IAP and subscription earnings.
If the developer exceeds the $1 million thresholds during this year for the remainder of that year the 30 percent rate will start back in effect. If the developing company falls below the threshold again the following year they will receive the 15% rate again.
Although the majority of developers in the App Store are unlikely to be eligible for the program, Apple together accounted for just a little of the Apple overall app store sales, $50 billion last year. Because large players dominate revenue, while a sea of smaller developers exceeds large players, although they definitely do not.
Apple is, therefore, able to deflect certain criticisms that its rates are expensive for independent developers with only a relatively small impact on its own. However, it will not alter the dynamic between Apple and very large developers who have lamented the 30 percent cut, for example, Epic Games. Such fighting will probably continue.
