Apple last week announced the launch of a new App Store Small Business Program that will cut the Cupertino firm’s cut of the action in the App Store for small developers. Beginning January 1, 2021, Apple will cut its commission to 15%, down from 30% for developers who earn less than $1 million.
The 15% commission rate applies to paid app purchases, in-app purchases, and in-app subscription fees.
Apple today shared a press release that includes multiple quotes containing the reactions from app developers about the changes. As you might expect, the reviews included in the press release are glowing.
Matt Hutton, founder, and creative director, Little 10 Robot – App: Tots Letters and Numbers
“This will put some extra wind in our sails for sure. Making apps is a joy for me. The App Store alone makes that possible. Thanks to the team at Apple.”
Andrea Huey, co-founder, and CTO, Broadstreet – App: Brief
“Apple has always stood up for the rebels — the little guy in the big fight. Brief is one of those tiny upstarts out to change the way the world gets news, and we’re so glad Apple has our back. It’s moments like this that show the company really cares about creative people everywhere.”
Nick Hobbs, co-founder and CEO, Broadstreet – App: Brief
“At Brief, we’re building a revolutionary news experience, and we couldn’t do it without Apple. We want to reinvent the way people get their news — and that’s really hard. This week it got a lot easier because Apple really cares about empowering upstarts everywhere.”
The praise goes on and on in the release. While the reviews were glowing in Apple’s press release, A report from MacRumors last week about developers that earn more than $1 million from the App Store shows that their comments on the changes are less than positive.
Spotify said that Apple’s fee change demonstrates that “App Store policies are arbitrary and capricious.” Meanwhile, Basecamp CTO David Heinemeier Hansson said that “Machiavelli would be proud” and that Apple was attempting to “paint any developer making more than $1m as greedy.”
And as can well be expected, Epic Games is less than pleased, as Epic Games CEO Tim Sweeney said that Apple is “gerrymandering the community with a patchwork of special deals” with the program.
Apple says the reduced App Store commissions are being put into place to aid small business owners to maintain their businesses and accelerate innovation during uncertain times.
