18 November 2020
  • Industry Insight

The new Apple App Store commission structure

In June 2020, I wrote an article outlining the controversy between Hey and Apple just before Apple’s WWDC event. It boiled down to this, Apple expects all businesses with Apps on their App Store, to give them a 30% commission.

Today Apple announced they’re making a change and all businesses with less than $1,000,000 in App Store revenue per year, are eligible.

The new rules state that the new fee imposed on Apps selling digital goods and services through their app stores is now 15% starting January 1st, 2021.

That is a huge increase in the margin of profit app developers can expect from January onwards.

Tim Cook, CEO of Apple, went on the record to say;

Small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities around the world. 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.

As someone who has been watching this story for a while, it’s felt like a long time coming. With the increased pressure from Epic, Spotify, and Hey, along with investigations from the EU looming, Apple is looking to win back the favour of the smaller developers worldwide.

So, what does this mean for you?

There’s never been a better time to take advantage of the Mac or iOS App Store as a trusted marketplace. The home of quality applications that have the potential to reach of billions.

Pete Heslop

Managing Director at Steadfast Collective, Pete's key focus is on building a team of smart creatives who build community-focused web applications.

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