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Apple will reduce App Store cut to 15 percent

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Re: Apple will reduce App Store cut to 15 percent

#13
post #6
post #5

This is finger to Epic games

Is it? Because Epic has been arguing how the 30% is excessive and now Apple is lowering the App Store cut for (some) developers.

Yeah, but not for Epic. Epic who should eat there words, because they started by asking for a discount because they are big fish. Only after Apple said no, they started to complain publicly hehe

Re: Apple will reduce App Store cut to 15 percent

#14
post #3
post #2

"The new App Store Small Business Program, as it’s called, will allow any developer who earns less than $1 million in annual sales per year from all of their apps to qualify for a reduced App Store cut of 15 percent, half of Apple’s standard 30 percent fee, on all paid app revenue and in-app purchases."

Reminds me of: https://en.wikipedia.org/wiki/Progressive_tax

Is it planned to be progressive or is the 30% cut taken on the full amount if developer revenue exceeds the $1M threshold by 1 dollar?

Re: Apple will reduce App Store cut to 15 percent

#15

So the small apps, where Apple has to spend more hours of work for every dollar of revenue, get a discount. And the big apps, where all they have to do is transmit more copies off their servers, don't get a discount. I have no idea what Apple's plan is between this and the Epic fight, but it's fun to watch!

> I have no idea what Apple's plan is between this and the Epic fight, but it's fun to watch!

Their plan is to turn down the political heat/volume coming from the underdog stories (David vs Apple), which are potentially endless in numbers. Apple risks a PR death by a thousand cuts from all the negative stories, a never ending bad PR run. Few have sympathy for the giant companies and conflicts between giant companies, so Apple isn't too worried about big apps not getting further discounts. The media loves to write underdog vs big bad giant corporation stories, they sell (and draw a lot of unnecessary anti-trust attention); Apple wants to throw water on that first and foremost.

Re: Apple will reduce App Store cut to 15 percent

#16

So the small apps, where Apple has to spend more hours of work for every dollar of revenue, get a discount. And the big apps, where all they have to do is transmit more copies off their servers, don't get a discount. I have no idea what Apple's plan is between this and the Epic fight, but it's fun to watch!

Seems reasonable, lower the barriers to entry to expand your reach & tax the rich to generate the revenue basically. Plenty of business have models like this, where start-ups and small companies get a much lower price then 'enterprises'.

And it's not like Epic isn't making enough money of their apps I'm going to assume.

Re: Apple will reduce App Store cut to 15 percent

#17
post #5

This is finger to Epic games

More like an admission of defeat ;) After all 15% is still higher than the highest EGS tax which is 12%. Good news nonetheless.

Why would you think it's an admission of defeat when Epic Games won't qualify for the 15%? To those that haven't read the article:

> The new App Store Small Business Program, as it’s called, will allow any developer who earns less than $1 million in annual sales per year from all of their apps to qualify for a reduced App Store cut of 15 percent, half of Apple’s standard 30 percent fee, on all paid app revenue and in-app purchases.

But this whole fight was never about Apple's cut, but rather about Tencent (and other Chinese apps) risking getting kicked off the App Store and thus needing to put pressure on Apple to allow third-party app installations. But since Trump lost the re-election then they probably don't have to worry anymore.

Re: Apple will reduce App Store cut to 15 percent

#18
post #6

Earlier quoted context omitted.

Is it? Because Epic has been arguing how the 30% is excessive and now Apple is lowering the App Store cut for (some) developers.

Yeah, but not for Epic. Epic who should eat there words, because they started by asking for a discount because they are big fish. Only after Apple said no, they started to complain publicly hehe

And after Epic started complaining publicly, Apple reduced their cut to 15% for most developers. Previously Apple just crossed their arms and told how incredibly fair and justified their 30% cut was.

Re: Apple will reduce App Store cut to 15 percent

#19

So the small apps, where Apple has to spend more hours of work for every dollar of revenue, get a discount. And the big apps, where all they have to do is transmit more copies off their servers, don't get a discount. I have no idea what Apple's plan is between this and the Epic fight, but it's fun to watch!

The Epic fight is just Epic making PR for themselves, it's not a real case.
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