Apple Cuts App Store Commission By Half For Small Developers

Good news for small developers.
Good news for small developers. Apple

Apple announced that its introducing the new App Store Small Business Program in the hopes of benefiting a majority of developers who sell their apps on the App Store. The program lowers the commission on paid apps and in-app purchases from 30% to 15%. This is only for developers or small business that earn a maximum of $1 million per year, though, so don't expect this to mend any fences with Epic Games.

The actual program is set to be launched on January 1, 2021. The program comes at an opportune time when small and independent developers continue to innovate while also trying to thrive in a period of what is clearly an unprecedented global economic challenge. By charging a smaller commission, Apple hopes that this allows developers to use added resources that they can invest in, as well as grow their businesses.

While the comprehensive details of the program are set to released sometime in early December, here are the basics:

  • Existing developers who earned as much as $1 million in 2020 for all of their apps, as well as developers new to the App Store, can qualify for the program and the reduced commission.
  • If a participating developer surpasses the $1 million threshold, the standard commission rate applies for the remainder of the year.
  • If a developer’s business falls under the $1 million threshold in a future calendar year, they can requalify for the 15% commission the year after.

In a statement, Apple CEO Tim Cook said that small businesses remain to be the backbone of the global economy as well as being the heart of innovation and opportunity in communities worldwide. He added that Apple is “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.”

Cook went on to say that the App Store has always been an engine of economic growth by creating millions of new jobs along with serving as a pathway for those with great ideas. He concluded by saying that the “new program 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.”

You can read more about this announcement here.

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