Apple's 15% Solution

Apple logo eating a dime and 5 pennies
When I wrote about Apple's 30% Dilemma, I didn't expect Apple to have a solution so quickly. For this  small independent developer, it feels like a holiday gift.

30% was the original cut Apple took from developers on their app store. Critics felt it was outrageously high. I was more moderate because my past experience with app stores for Palm made clear the value of Apple's eco-system and the tools they produced. Still, I hoped Apple would lower the rate because it would the wise, and business-savvy, thing to do.

Apple recently announced the App Store Small Business Program which reduced the commission from 30% to 15% on businesses earning up to $1 million per year. Ars Technica ran the story and a minority of the commentariat pointed out that the $1M limit would discourage development as earnings approached that figure. The reason being to avoid the 30% bracket.

Entrepreneurs and creatives don't think like that. Bean counters do. Apple just gave the small independent developer a better chance at success. Thank you.


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