App Store revenue is a major part of Apple's services business, which generated $14.55 billion in the quarter ended in September, accounting for 22% of the company's revenue for the period.īut Apple will still charge a 30% fee for in-app purchases for top grossing apps, meaning the impact to Apple's financials could be minimal. Wednesday's announcement is separate from Apple's lower 15% fee on the second year of subscriptions billed through the App Store, which applies to big companies as well and was implemented in 2016.Īpple said last month in an annual filing with the SEC that reducing its App Store commission rate could hurt the company's financial results.
Apple said it will reveal more details about the terms of the reduced commissions next month. If they later fall under $1 million in sales for a calendar year, the lower commission can be restored. Once developers pass that threshold, they'll be billed at the standard 30% rate, Apple said. The new program is for small developers who make less than $1 million per year across all their apps on Apple's App Store, after Apple's fees. A report from the House Judiciary Subcommittee on Antitrust published in October says Apple generates " supra-normal profits" from the App Store.
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The move is an olive branch from Apple as lawmakers around the world are increasingly focusing on its business practices for the App Store, which is the only way for most people to install software on an iPhone or iPad. New developers who haven't published on the App Store before will also qualify for the lower, 15% commission fee. 1 and that developers who qualify will receive reduced App Store fees for paid app and in-app purchases. Apple says the App Store Small Business Program will begin Jan.