Apple has made a big change to the cut it takes from all in-app purchases on its App Store, with the company slashing its rate from 30% down to 15% for most of its developers.
In response to the tough year Apple says its developers have been enduring, the company will now only take a 15% cut from all apps that make less than $1 million revenue annually. According to app analytics firm Sensor Tower, that accounts for nearly 98% of iOS developers currently, which makes the move a big shift for the company.
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According to the same firm, however, this same 98% only accounts for 5% of Apple’s total app revenue, which might explain why the company is comfortable with such a drastic change. This also has no bearing on the ongoing court battle between Epic Games and Apple considering Fortnite’s massive turnover on iOS. The Fortnite developer is seeking to get App Store rates slashed after claiming that Apple’s cut is part of a monopolistic practice.
Apple developers looking to apply for the program can make submissions to Apple before the program goes live in January 2021. New developers will also be automatically opted into the program, with Apple only switching over the rate to the higher 30% if revenue ticks over the million mark in a calendar year.