Apple reduces the commission rate in the App Store to 15%
Apple reduces the commission rate in the App Store to 15%

Apple said on Wednesday it will cut the App Store commission rate to 15% for software developers whose annual net revenue on its platform does not exceed $ 1 million.

Apple currently charges a 30% commission on the total price for paid apps and in-app purchases made through the App Store. For some small app makers, the new policy could cut their payments to Apple in half.

Apple said that the "App Store Small Business Program" will start on January 1, and eligible developers will receive reduced commissions on the App Store for paid app purchases and in-app purchases. New developers who haven't yet published an app in the App Store will automatically receive a new commission rate.

Apple is believed to be working hard to demonstrate its sincerity to lawmakers around the world with this step. They are paying more and more attention to their business practices on the App Store. This is the only way most users can install software on their iPhone and iPad smartphones. . A report issued by the House of Representatives' Antitrust Judicial Subcommittee in October last year stated that Apple had received "more than normal profits" from the App Store.

The company said the new program is aimed at young developers who, after deducting Apple's costs, get less than $ 1 million in revenue each year from all of their apps in the Apple App Store. The company announced that once developers exceed this limit, they will charge a standard 30% commission. If their sales subsequently drop below $ 1 million in a calendar year, they can return to lower commissions. Apple said it will publish more details about the commission cut item next month.

In its annual report to the US Securities and Exchange Commission last month, the company said that lowering the app store commission rate could hurt the company's financial performance. App Store revenue is an important part of Apple's service business: In September last year, the company generated $ 14.55 billion in revenue, or 22% of business revenue, over the same period.

However, for the more profitable apps, Apple continues to charge a 30% in-app purchase fee, which means the impact on Apple's finances could be minimal.

Apple said: (App Store) The Store contains about 1.8 million apps. According to a 2019 report by the app analytics company (Sensor Tower), the major publishers, who make up no more than 1% of the total number of publishers, generated about 93% of their revenue through the App Store. Apple and Google (Play Store).

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