After a series of litigation and controversy trailing its 30% commission on all in-app purchases and sales. Apple has finally decided to reduce its high handed marketplace fees.
Going forward, due to the newly introduced App Store Small Business Program, developers who earn less than $1 million in yearly revenue will now pay 15% in terms of all transactions that take place on all iOs based apps.
The new program will go into effect by January 2021. New app developers can start benefiting from the plan almost immediately whilst existing developers will be structured to benefit from the new plan from early next year.
The App Store generated $50 billion in 2019 from App Store related and it is a major revenue generation platform for the Apple brand. The new Small Business Program doesn’t however, affect the revenue by much as developers who fall in that category only account for 5% of total revenue.