Apple always goes for its brand value while placing itself as the finest brand. The Company has ever manufactured top-notch quality goods but overpriced. However, the overpricing does not necessarily decrease the demand for Apple products. Even though being one of the most expensive brands, Apple makes sure it promotes its products making the users want the Apple goods, whatsoever.
For instance, iPhones do not necessarily have impressive specifications, yet they manage to stand out amongst the others belonging to the same arena. Hence, the Company is following the same pattern of premium on apps from the App Store. This is mostly done to guarantee and monitor the quality of the devices. This is also the reason for the App Store not being crowded with harmful or bad apps.
Big Apple news. Apple is reducing its App Store cut to 15% for most app developers in January. This is a BIG deal for indie app developers that usually have to pay 30% on app revenues and in-app purchases. Details here: https://t.co/S878cPgzdf pic.twitter.com/Livxh3ofxW
— Tom Warren (@tomwarren) November 18, 2020
The Company charges a premium to developers who may charge the end-users in their subscription models. But now, it is likely that Apple is slowly working to minimize this premium. This is more comprehensively covered in an article from the Verge as per the tweet from Tom Warren.
Furthermore, Apple states that from January of 2021, it will be lessening the cut in half. This scheme will be quite favorable for smaller developers offering good quality products but not being able to endure the costs. However, other manufacturers may also fix the price of their products like subscription models so as to give excellent performance for the end-users. As a result, this would clutter the App Store.
Likewise, Fortnite didn’t fulfill Apple’s policies as it took away from the Company’s cut. So the app was deleted from the App Store. Similarly, other developers have been following the same path. Reducing the cost would incentivize them not to do so. With this, the service quality that they offer could be upgraded.
Furthermore, this system would focus on incentivizing smaller developers. Apple is declaring a program targeting developers who earn less than 1 million dollars in total annual revenue. Well, must say this is a nice strategy that Apple has adopted to keep the smaller businesses or developers connected and close.