Apple Decides to Reduce the “Cut”
Last week has been a phenomenal week for small/new iOS developers.
In the last post during early days of Epic Vs Apple Lawsuit, I put up some figures and interpretations of Apple’s stance and arrived at a conclusion that Apple is a big player in the market and the trendsetter of the online App charges.
We wanted Apple to reduce the cut for the minor players in the market and they could end up helping out a lot more app developers than intended.
Now as Apple has finally listened to our appeal and decided to reduce the transaction cut to 15% for developers making up to $ 1 Million annually.
The changes will come into effect from 1st January 2021 as a part of App Store Small business development program. According to Apple the change will affect the vast majority of the developers making apps for the iOS platform.
This change is one thing that Apple has thought through before setting the
$1 Million upper cap. According to Sensor Tower (Analytical Firm) around 98% of developers on App Store were doing business below the set budget cap.
By the likes of obtained Data, Apple might be heading for a huge chunk of revenue losses following the move in 2021.
But here lies a catch.
Apple just makes 5–7% of it’s total App Store revenue from these “small developers” the rest of the revenue is from comparatively larger corporations/developers.
Apple would suffer a rather insignificant amount of money inflow after the new price cuts make to the App Store.
But this move has put up options for many amazing App Developers who are now considering developing iOS apps as the new revenue system turns out to be fruitful for them.
Hope Apple continues to listen to their users and developers like this and keeps on providing more support to help them grow.
Evolution is the key to survival, and if Apple keeps on evolving with the demands of it’s creators and consumers, Apple will keep on improving. If they do not, then the fate of Nokia awaits them.
