Apple announces “Self Service Repair” program: parts and tools for customers

In a move that caught just about everyone off guard, and that is surely intended to head off any “right to repair” bills, Apple today announced a new repair program for customers. The “Self Service Repair” program makes parts, tools and manuals available to customers. At first the program will support iPhone 12 and 13 models, followed soon after by M1 Macs. It will start in the US early next year and expand to other countries throughout 2022.

From the PR:

Creating greater access to Apple genuine parts gives our customers even more choice if a repair is needed,” said Jeff Williams, Apple’s chief operating officer. “In the past three years, Apple has nearly doubled the number of service locations with access to Apple genuine parts, tools, and training, and now we’re providing an option for those who wish to complete their own repairs.”

Customers looking to repair their devices will purchase replacement parts, tools and manuals through a new online store. When the repair is completed, the user will send the defective part back to Apple and receive a credit. From the PR:

To ensure a customer can safely perform a repair, it’s important they first review the Repair Manual. Then a customer will place an order for the Apple genuine parts and tools using the Apple Self Service Repair Online Store. Following the repair, customers who return their used part for recycling will receive credit toward their purchase.”

Of course, the devil is always in the details. How much these self service repairs will cost end users remains to be seen.

Still, this is a huge course correction for Apple and a mammoth win for right to repair.

Apple reducing App Store commission fee for small businesses

Apple today announced that they will be reducing the App Store commission rate from 30% to 15% for developers who earn less than $1 million USD from the App Store. This comes as Apple has been under pressure from developers like Epic Games and Spotify, who have called Apple’s 30% commission unfair and anti-competitive.

The reduced fees will apply to both app sales and subscriptions. Once a developer’s sales expand beyond the $1 million USD mark, then all additional sales are subject to the 30% rate.

John Gruber writes in his article:

Let’s say a new developer enters the program (and thus qualifies for the 15 percent commission) and their apps are on pace to generate $1.2M in sales. At 15 percent, $1.2M in revenue would generate $1.02M in earnings — putting them over the threshold, so their entire earnings the next year would face a 30 percent commission. If their sales remain flat the next year, the same $1.2M in revenue would earn them only $840K at 30 percent. They’d have to generate $1.5M in revenue to earn the same profit that $1.2M in sales brought them the year before. Basically, if the end of the year draws near and a developer in the Small Business Program has revenue approaching $1.2M, they’re incentivized to pull their apps or reduce their prices to keep from going over the threshold.

John makes an interesting point. The $300k difference between $1.5M and $1.2M means the difference between being able to pay for an entire developer’s salary for a year. For a small business, it’s a legitimate concern.

And kudos to John for finally figuring out that higher taxes on earnings can disincentivize people and businesses from wanting to produce. Though I’m sure the comparison will be lost on him.