Apple is reducing its App Store fees from 30% to 15% for developers who produce about $1 million annual revenues from their apps and those new to the store, according to Bloomberg. The change, which will come into effect on January 1, seeks to help smaller developers financially, given the economic struggles caused by the COVID-19 pandemic.
- Apple’s new app fee structure will apply to the “vast” majority of developers who charge for apps and in-app purchases on its devices and will not affect other major apps such as those from Netflix.
- The change comes as Apples faces scrutiny from developers about the percentage of revenue it takes for App Store purchases.
- Income from app developers has been key to Apple’s service business, and in fiscal 2020, revenues reached almost $54 billion.
- Earlier this year, Apple also loosened restrictions on some cloud-gaming apps and email services, charging a fee to fewer developers
- There are about 1.8 million apps on the App Store and more than 28 million registered developers.
Apple’s stock is currently declining. AAPL: NASDAQ is down 0.36%