Apple announced today that it lowers App Store commission to 15% for app developers and small businesses earning less than $1 million per year. The Small Business Program will be launched on January 1, 2021.
“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.” the company said in a statement.
Existing developers who made up to $1 million in 2020 for all of their apps, as well as developers new to the App Store, will be qualified for the program and the reduced commission.
For the developers and businesses surpassing $1 million yearly, Apple will apply the standard commission rate of 30%. However, if they fall below the $1 million threshold in a future calendar year, Apple will reevaluate their availability for 15% commission for the year after.
“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.” said Tim Cook, CEO of Apple.
“Developers of all sizes have built successful businesses while benefitting from the App Store’s global reach encompassing users of the more than 1.5 billion Apple devices around the world in 175 countries and over 40 languages, with more than 180 local payment methods and 45 accepted currencies. In 2019 alone, the App Store ecosystem facilitated $519 billion in commerce worldwide — with over 85 percent of that total accruing solely to third-party developers and businesses of all sizes. The new App Store Small Business Program will build on that progress to generate even more digital commerce and app innovations, support new jobs, and help small and independent developers continue to bring great software to Apple users.”