Apple Starts Charging Reduced App Store Commission From Some Developers

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Apple appears to have started rolling out its reduced App Store commission for some developers. Final month, the Cupertino company announced the App Store Small Trade Programme to chop its App Store commission from the existing 30 percent to 15 percent. The programme used to be deliberate to be to be had on January 1, 2021. On the other hand, some developers have now reported on social media that the reduced commission rate is now live for their App Store Connect accounts. The initiative is notably not meant for all Apple developers and is limited to the ones who earn up to $1 million (kind of Rs. 7.4 crores) in annual sales per year from all their apps.

As spotted by Apple Insider, developers including Jacob Gorban of Winnipeg-based software firm Obvious Software have started reporting a 15-percent dip in Apple’s App Store commission. Some other developers have also reported an identical change.

 

The reduced App Store commission rate doesn’t appear to be limited to developers in the USA and Canada and could also be rolling out for independent app developers in markets including India.

“The change in rate of proceeds to 15 percent appears to be active already,” tweeted Rajkot-based developer Aditya Rajveer of music app Marvis. “I’m seeing proceeds of $5.09 for $5.99 in the US.”

Apple’s move with early rollout of the reduced commission rate has been welcomed by many app developers. “I’d say it used to be in point of fact a great surprise that Apple didn’t wait for January 1 to minimize the commissions, they wanted to supply it as a Christmas gift to us. The reduced commission helps a ton,” Rajveer told Gadgets 360.

You will need to spotlight that the App Store Small Trade Programme is limited to the existing developers who made up to $1 million in 2020 for all their apps and the developers new to the App Store. The company stated in its announcement in November that developers would be required to enrol for the initiative to stand eligible for the reduced cut.

Several app developers posted on Twitter that Apple started accepting enrolees for the programme earlier this week. An email used to be sent by the company to notify developers approximately their enrolment, though it didn’t spotlight early rollout.

“We’re pleased to welcome you to the App Store Small Trade Program. The commission rate on your paid apps and in-app purchases will be 15% by January 1, 2021, so you’ll invest more resources into your commerce to continue building quality apps that customers love.” #iOSDev

— CONATH (@_conath) December 23, 2020

 

Apple faced strong criticism from the developer community and regulators for charging the 30 percent commission. Companies including Basecamp and Spotify hit the company tough for cutting their revenues through the commission that is relevant for both in-app purchases take place through their apps and all purchases their users make through the App Store.

The increase in outrage and regulatory pressure essentially pushed Apple to come out with the App Store Small Trade Programme.

Will Apple Silicon Lead to Affordable MacBooks in India? We discussed this on Orbital, our weekly technology podcast, which you’ll subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.

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Jagmeet Singh

Top stories / News / Tech / Gadgets

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