Apple App Store Fees Cut by 50%: How it Opens the Market for New App Ideas? 

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Nov 2020
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Apple App Store Fees Cut

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In the last few months, Apple faced criticism for charging a 30 percent commission rate on app submissions. Now, the company has come up with the new App Store Small Business Programme and has reduced the commission rate by 50%.  

But, Apple’s announcement of a 50% cut in App Store fees has just opened the doors for new app ideas in the market. We expect to see small and medium business owners investing more in mobile application development. 

Let’s read on to know what’s in store for the app developers with this reduction of the commission rate.

Apple Halves the App Store Fees

There is a wide acceptance of the Bring Your Own Device (BYOD) culture, which has led to many businesses opting to pursue Apple’s iOS application development.

According to a survey from Statista, by the third quarter of 2020, there were 1.96 million mobile apps available at the Apple App Store. This figure represents a 7.53 percent increase in the available apps as compared to the previous quarter.

But, this growth has gone hand-in-hand with the complaints about Apple taking a huge 30 percent cut from the app maker’s sales. The commission rate proved grossly consequential for Apple and, as a result, drew anti-trust scrutiny and lawsuits from customers and partners

Apple Halves the App Store Fees

Apple’s Take

As it faced the growing unrest about the size of its commission rate, Apple declared that it would cut in half the app store commission fee it took from the smaller app makers.

The company said it would charge app makers a 15 percent commission, instead of the standard 30 percent commission, if they earned less than $1 million in 2020 – under the “App Store Small Business Program.” 

Developers whose revenue later exceeds $1 million will be charged at the standard commission rate of 30 percent for the rest of the year. But such developers could requalify in the future if their revenue dropped below the threshold again.

Let’s find out what does it signify for businesses.

Fewer Store Commissions Create More Opportunities for Small & Mid-size Businesses

Given that businesses – especially small and mid-size are looking at ways to reach out to customers through various digital platforms, a drop in commission rate will surely benefit them. 

Apple CEO Tim Cook said, “Small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities around the world.”

He also added, “We’re launching this program to help small business owners write the next chapter of creativity and prosperity on the App Store, and to build the kind of quality apps our customers love.”

The App Store Small Business Programme thus comes at a crucial time.

Why?

Because many small and independent developers are working to innovate and thrive during this period of an unprecedented global economic challenge.

So, what does the App Store Small Business Programme’s reduced commission signify?

It means that small and aspiring businesses will find more resources to invest in and grow their businesses in the App Store ecosystem. It will spur in many new app ideas that were earlier unthinkable.

Remember, launching an app is much more than only choosing the best app development technologies and methodologies. You must have a novel idea for your App. 

If you already have an innovative idea for your iOS app, you’re all set to benefit from Apple’s fee cut. 

However, if you’re still working on thinking of a new idea for your App, we can take you through some ideas you can benefit from in the current scenario.

Apple Halves the App Store Fees creating new app opportunities

1. Book Donation App

Developing a book donation app is an appealing idea these days. 

Even in this digital world, many still prefer a traditional hard copy book to read from. With the increasing cost of education, many people from the underprivileged section are forced to stay without books. 

Many NGOs and libraries can benefit from such apps and collect books for the needy. In addition to this, such apps can be an excellent platform for donors and receivers to connect.  

2. AR App to Design the Interiors

Combining augmented reality with home furnishing is a brilliant way mobile apps can help users design their interiors. It can be stressful to invest in an expensive home furnishing, only to realize later that it doesn’t look as spectacular as you thought. 

To avoid the hassles of buying and returning, users will be happy to have an AR app that will be fun to use.

Also Read: AR App Development: 6 Sectors That Should Invest in Augmented Reality

3. My Parking Space App

This is an app idea for finding a parking space in your city. It’s a headache to find parking space in densely crowded areas. Such an app can help people find parking spots available in a specific location. 

The App will have to use the GPS, webcams, location, and real-time parking data to find its user a free parking space as soon as they request.

4. Travel Buddy App

Travelling is always in-demand. It can be more fun when there is a travel companion. App for travel buddies can help connect travelers with common travel itineraries so that they can share experiences and travel costs. 

People can meet new travel companions – solo travelers, families, couples, and senior citizens. Such apps are useful for travelers, travel agents, service providers, and travel bloggers.

5. Health and Nutrition Evaluating App

In this time of the pandemic, every person is looking for ways to stay healthy. Health and nutrition evaluating app with features to track the nutrition intake, manage food intolerances, increase energy, and manage mood changes can make for an interesting app.

Here’s how to develop and launch a successful health and fitness app in the market.

6. On-Demand Home-Cooked Food Ordering App

Although we can easily order delicious food from the restaurants, nothing can beat a fresh home-cooked meal. But what if you are too busy to cook but still crave home-cooked food?

We can be innovative here and develop an iOS app for such people who want nutritious, home-cooked food services at a reasonable price via mobile apps. 

Although such apps are already available, customization of features can add to uniqueness in such apps – food menu with the specific dietary requirement, support in multiple languages, and search for particular cuisines. 

Also Read: Key Features of An On-Demand Food Delivery App

7. Skills Enhancement App

People these days are learning new skills for broader life experiences. It is the right time to create an app to help users learn some new language or a new skill.

Such learning apps can come up with many advanced features – video-based content, live sessions, testing knowledge, offline mode, and gamification.

8. On-Demand Fuel Delivery App

No matter which kind of vehicle one owns, an app to get Fuel without needing to go to the fuel station can be a useful option.

Such an application can be listed at the nearby fuel stations, so when someone makes a request, it will automatically detect their location and deliver the required Fuel at a certain time.

9. Virtual Classroom App

With studies happening virtually, platforms for students and teachers are needed to meet just as in the case of physical classrooms. 

Students can ask questions, prepare for their exams along with other students, and teachers can teach.  Such apps can provide the students with study material, discussion helps, and tools to raise questions, etc.

10. Find-A-Flexible-Work App

With Covid-19, many have gone into the flexible time work culture. An app to help people find flexible work is the need of the hour. Companies, too, may not want to invest in full-time employees. 

A comprehensive app for students, people looking for work, and employers can be a win-win solution for such a case. 

Turn Your Idea into A Successful Digital Reality

It’s a brilliant time for all small and mid-size businesses to invest in developing iPhone apps. 

We can help you develop a tailor-made solution for your business mobile app and stay ahead of the competition. 

If you want to build an innovative iOS mobile app for your business, then get in touch with us.

We are an award-winning web and mobile app development agency with vast experience in crafting remarkable digital success stories for diverse companies. Let’s talk.

 

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