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Apple Announces App Store Small Business Program

(www.apple.com)
830 points todsacerdoti | 3 comments | 18 Nov 20 11:04 UTC | HN request time: 0.438s | source
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karolkozub ◴[18 Nov 20 11:30 UTC] No.25135615[source]▶
Wow. That's amazing. That's a 20% increase in revenue for those eligible. I'm guessing they decided the increased value of their products from more smaller developers creating apps for the platform is greater than the lost revenue.

If I understand correctly though, since it's a hard cutoff it creates this gap between 1m and ~1.2m where you're actually worse off by making more money pre-tax.

   999k --[-15%]--> 849k
  1000k --[-30%]--> 700k
  1213k --[-30%]--> 849k
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konschubert ◴[18 Nov 20 11:56 UTC] No.25135799[source]▶
Yep. Apple should have handled this like tax brackets: The first million gets taxed 15% and anything beyond that gets taxed 30%.

I wonder why they're not doing that and creating all kinds of weird edge cases that will encourage hacky workarounds.

I guess they didn't want to lose out on the first million from those who are above the first bracket.

replies(1): >>25135831 #
1. Zobat ◴[18 Nov 20 12:01 UTC] No.25135831[source]▶
From the annoncement: "If a participating developer surpasses the $1 million threshold, the standard commission rate will apply for the remainder of the year."
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2. dkarbayev ◴[18 Nov 20 12:07 UTC] No.25135876[source]▶
But next year the commission rate will be 30% and if the earnings that year are below $1m the business will be only eligible for the reduced commission year after that.
3. timjver ◴[18 Nov 20 12:13 UTC] No.25135911[source]▶
Right, but will they be eligible the year after? If not, then this still means that not surpassing the threshold could increase their revenue in the long run.