- November 19, 2020
- Posted by: Stratford Team
- Category: Markets
(RTTNews) – Tech giant Apple Inc. (AAPL) is cutting by half the fees the company charges from developers.
The iPhone maker will now charge a fee of 15%, down from 30%, from developers who generate as much as $1 million in a year from App Store. New developers also qualify. The change will go into effect January 1, 2021, as part of an App Store Small Business Program, Apple said Wednesday in a statement.
The $1 million figure is calculated on the basis of the developers’ post-commission earnings rather than the total revenue of their products.
“The savings mean small businesses and developers will have even more funds to invest in their businesses, expand their workforce, and develop new, innovative features for app users around the world,” the company said in a statement.
Apple’s decision to lower its developer fess follows widespread criticism by developers of the higher percentage of fees Apple charges.
Recently, CEO Tim Cook was also questioned by US lawmakers at a competition hearing regarding the rates his company charges.