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Friday,03-December-2021

Business

Apple to reduce App Store commission by half for most developers

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Apple

Facing flak for App Stores 30 per cent standard commission for paid app revenue and in-app purchases, Apple on Wednesday unveiled a new developer programme that will reduce the charge by half for small businesses that earn up to $1 million in revenue from January 1.

Apple said the new “App Store Small Business Programme” will benefit the vast majority of developers who sell digital goods and services on the store, providing them with a reduced commission on paid apps and in-app purchases.

To be launched on January 1, the programme comes at an important time as small and independent developers continue working to innovate and thrive during a period of unprecedented global economic challenge.

The programme’s reduced commission means small developers and aspiring entrepreneurs will have more resources to invest in and grow their businesses in the App Store ecosystem.

“We’re launching this programme 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,” Apple’s CEO Tim Cook said in a statement.

“The App Store has been an engine of economic growth like none other, creating millions of new jobs and a pathway to entrepreneurship accessible to anyone with a great idea. Our new programme carries that progress forward — helping developers fund their small businesses, take risks on new ideas, expand their teams, and continue to make apps that enrich people’s lives.”

Existing developers who made up to $1 million in 2020 for all of their apps, as well as developers new to the App Store, can qualify for the programme and the reduced commission.

If a participating developer surpasses the $1 million threshold, the standard commission rate will apply for the remainder of the year, Apple said.

If a developer’s business falls below the $1 million threshold in a future calendar year, they can requalify for the 15 per cent commission the year after.

The App Store’s standard commission rate of 30 percent remains in place for apps selling digital goods and services and making more than $1 million in proceeds, defined as a developer’s post-commission earnings.

Every week, half a billion visitors to the App Store engage with 1.8 million apps, from indie games like “Song of Bloom,” to virtual fitness coaches like MySwimPro, to coding apps for kids like Hopscotch.

Most of the developers of these apps are happy with Apple’s new programme.

“The new App Store Programme will be a huge help to our revenue from purchases in the App Store, and we’re hoping to be able to leverage any more proceeds we get to help make the app better,” said Adam Oxner, Co-founder and Chief Technology Officer of MySwimPro.

The new reduced commission rate for some developers come after Apple faced criticism from different quarters for App Store’s standard 30 per cent cut.

The controversies surrounding the commission includes the launch of a European antitrust investigation into the App Store and Apple Pay and a legal battle with Epic Games over the inclusion of the game maker’s own in-app payment options in Fortnite, among others.

Business

Unheard of Rs 3.3 lakh Cr bank deposit bulge in Diwali week slumped in a fortnight

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Indian-Rupee

State Bank of India’s Economic Research Department has highlighted the curious case of Rs 3.3 lakh crore deposit bulge and the Rs 2.7 lakh crore deposit slump in alternate fortnights.

As per the provisional data released by RBI for the fortnight ended November 19, ASCB’s aggregate deposits have slumped by Rs 2.7 lakh crore during the fortnight. The slump in deposits follows an abrupt increase by Rs 3.3 lakh crore during the previous fortnight ended November 5. Interestingly, such growth in deposits was around 36 per cent of the incremental deposit growth at that point of time. This increase in deposits and subsequent slump is quite a contrarian trend, says Soumya Kanti Ghosh, Group Chief Economic Adviser, State Bank of India.

While it may be exactly difficult to decipher the increase and subsequent decline, it does pose questions on liquidity management/financial stability or a shift in behavioural trend in customer payment habits through digitisation and hence lower currency leakage and concomitant deposit bulge or both.

First, the fortnightly increase of Rs 3.3 lakh crore. This has never happened during a Diwali week as there is always a currency leakage and concomitant deposit decline. This is also the fifth largest increase in any fortnight in the last 24 years. Such huge incremental addition has happened only a few times, with higher deposits accretion (than the current year’s fortnight) occurring during the fortnight ended November 25, 2016 (Rs 4.16 lakh crore), September 30, 2016 (Rs 3.55 lakh crore), March 29, 2019 (Rs 3.46 lakh crore) and April 1, 2016 (Rs 3.41 lakh crore). However, the increase in November 2016 was because of demonetisation and the March and April fortnightly increases could be attributed to seasonal year-end bulge. In this respect, the current deposit bulge requires a detailed explanation, the report said.

Next, the fortnightly deposit slump in the subsequent fortnight. ‘We believe that it is possible that there was a large influx of deposits into the banking system for the fortnight ended November 5, 2021 in anticipation of a build up in rally in stock markets post primary issuances of new age companies and others. However, when such a rally did not materialise, the bulge in banking deposits slumped and almost 80 per cent of deposit bulge was withdrawn, the report said.

Interestingly, the amount of money parked in fixed reverse repo window jumped from Rs 0.45 lakh crore on October 19 to Rs 2.4 lakh crore on November 17, 2021 and has remained at such level till December 1. However, it must be noted that the significant jump in digital transactions has also resulted in lower usage of cash in the current fiscal and ideally could also have resulted in a surge in deposits for the Diwali week.

Meanwhile, if we look at the quarterly ASCB data, though the deposits growth remains same in Q2 (2.6 per cent) as compared to Q1 (2.5 per cent), sequentially at all-India level, apart from Metro regions, the deposits growth has decelerated in Q2 as compared to Q1, particularly in rural areas indicating that the current economic recovery is mostly urban led and rural economy is still recouping. Meanwhile, ASCB’s credit has increased by Rs 1.18 lakh crore (7.1 per cent YoY) during the fortnight ended November 5, which may be due to festive demands.

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Business

Oil marketing companies keep diesel, petrol prices unchanged

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petrol

Oil marketing companies kept diesel and petrol prices unchanged across major Indian cities on Friday.

Accordingly, diesel and petrol prices in Delhi stood at Rs 86.67 per litre and Rs 95.41 per litre, respectively.

In the financial capital Mumbai, the prices remained unchanged at Rs 94.14 and Rs 109.98 respectively.

Prices also remained static in Kolkata at Rs 89.79 and Rs 104.67 respectively.

In Chennai too, it remained at Rs 91.43 and Rs 101.40 respectively.

Across the country as well, the price of the fuel largely remained unchanged on Friday, but the retail rates varied depending on the level of local taxes.

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Business

Equity indices rise for third consecutive day

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The 30-scrip Sensitive Index (Sensex) rose in the early trade on Friday. Indices have been gaining for the past three consecutive sessions.

At 9.15 a.m., the S&P BSE Sensex traded at 58,671 points, up 0.37 per cent.

It opened at 58,555 points from the previous close of 58,461 points.

Till now it has touched a low of 58,512 points.

Besides, the broader 50-scrip Nifty at the National Stock Exchange (NSE) opened at 17,424 points after closing at 17,401 on Thursday.

It traded at 17,475 points, up 0.39 per cent during the early-morning trade session.

Hindustan Zinc, Infosys, NMDC, L&T and BPCL were some of the top gainers during the early trade, exchange data showed.

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