Apple has already instituted some
changes to its long-running App Store
practices, and recent developments
have also made it clear that further
changes are likely on the way. So what
do we have to look forward to in 2021?
CUT IT OUT
Apple’s newly unveiled Small Business
Program aims to change one long-
standing number: 30 per cent. That’s
the cut of App Store proceeds that
Apple has taken since the store’s
inception. But in November Apple
announced that developers who earn
less than $1 million in proceeds in a
given calendar year will be eligible to
apply for a reduction of Apple’s portion
to just 15 per cent, with some caveats.
That’s a big deal. Some analysts
say that up to 98 per cent of the
developers on the App Store earn less
than $1 million; of those that cross that
line, most are large companies that
earn far in excess of the number. But it
does leave questions about the ones
stuck in the middle.
One catch about the programme
is that if you hit that $1 million in a
calendar year, the remainder of your
year’s proceeds jump back up to that
30 per cent mark – and you have to
spend the next year at 30 per cent.
Only if the following year’s revenue
drops below the $1 million mark are
you eligible to apply for the 15 per
cent deal the following year.
That ping-ponging has some
developers worried and has even led
to suggestions that developers might
pull their apps from the store late in
the year if their income approaches
that $1 million mark.
Is this a test balloon on Apple’s
part? It’s hard to say. The 30 per cent
cut is largely standard across not only
the mobile industry, but also in other
digital storefronts like game consoles.
Apple’s move may shine a brighter
spotlight on those that stick with the
30 per cent number across the board.
But though Apple can pretty easily
weather this reduction in their App
Store income, competitors – such as
console makers, who often sell the
hardware at a loss and recoup their
investment via these fees – may
struggle. But you can bet that Apple
will be keeping a close eye on how
this programme goes over the next 12
months, not only for developers, but
also for itself. In no small part because
the App Store has some related
challenges ahead as well.ANTITRUST, BUT VERIFY
Like the rest of Big Tech, Apple has
found itself in the cross hairs of