Apple Drops App Store Commission to 15% for Developers Earning Less Than $1 Million Per Year

Apple Drops App Store Commission to 15% for Developers Earning Less Than $1 Million Per Year

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Apple has announced a new 'App Store Small Business Program' that reduces the App Store commission rate to 15% for developers that earn less than $1 million per year.

The new App Store Small Business Program 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. Developers can qualify for the program and a reduced, 15 percent commission if they earned up to $1 million in proceeds during the previous calendar year.

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

While the comprehensive details will be released in early December, the essentials of the program’s participation criteria are easy and streamlined:
● 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 program 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.
● If a developer’s business falls below the $1 million threshold in a future calendar year, they can requalify for the 15 percent 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.

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Apple Drops App Store Commission to 15% for Developers Earning Less Than $1 Million Per Year

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