Apple Drops App Store Fees to 15% for All Developers Making Under $1 Million From App Store

Apple today announced the launch of a new App Store Small Business Program that will see the Cupertino company lowering its App Store fees for small business owners and independent developers. Starting on January 1, 2021, all developers who earn less than $1 million from the ‌App Store‌ will pay 15 percent in commission to Apple, down from the standard 30 percent.

app store 15 percent feature
The 15 percent commission rate applies to paid app purchases, in-app purchases, and subscription fees, with the lowered rate benefitting most developers on the ‌App Store‌.

"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."

All developers who earned under $1 million in 2020 are able to qualify for the program and the reduced 15 percent commission rate. New developers who join the ‌App Store‌ and create apps in 2021 will also qualify. Going forward, developers who earn up to $1 million in the prior calendar year will be able to participate.

Developers who earn over $1 million will not be eligible, with the $1 million total calculated using post commission earnings that take into account total earnings after Apple's standard 30 percent cut. Developers earning more than the cutoff will continue to pay the standard 30 percent commission rate.

If a developer who participates exceeds $1 million in earnings, commissions will go back up to the 30 percent rate as well. For example, a developer who joins the program in 2021 and exceeds $1 million in earnings mid-year will need to pay out 30 percent commission going forward for the rest of the year. This will also apply in 2022, but if after that revenue falls below the $1 million threshold, the developer will be eligible for the program again in 2023.

As for subscriptions, developers who are eligible for the program will pay a 15 percent commission on subscriptions, even during the first year. Apple already has mixed ‌App Store‌ fees for subscriptions. During the first year a person subscribes, the standard commission rate is 30 percent, but it drops to 15 percent after that. That fee structure remains in place, but Small Business Program participants will pay 15 percent for all subscribers.

According to Apple, the reduced ‌App Store‌ fees are being implemented to help small business owners maintain their businesses and accelerate innovation during uncertain times. The fee drop is being implemented as developers try to work through economic challenges and more and more business are pivoting to digital as people continue to work and learn from home.

The fee changes will be a relief to many developers who have been unhappy with Apple's ‌App Store‌ fees. Apple has faced scrutiny from U.S. antitrust regulators in the United States, and investigations conducted by those regulators have surfaced complaints from developers who believe Apple's fees are too high.

Today's fee cut won't benefit some of the developers that have been the most vocal about Apple's commission rates, such as Epic Games, but it will relieve some of the pressure on the small business owners that need the most help.

There are more than 28 million developers from 227 regions who offer apps through the ‌App Store‌, and 1.8 million apps available worldwide. Apple says that the program will be available to the majority of developers, with those developers all receiving the same access to Apple's developer tools and programs. Apple expects the ‌App Store‌ Small Business Program to generate more digital commerce, support new jobs, and provide more funds for small businesses to invest back into their apps as they work to create innovative software for Apple users.

Top Rated Comments

Coconut Bean Avatar
15 months ago
EPIC!!!!

Or well, not for EPIC. LoL.
Score: 110 Votes (Like | Disagree)
Davehaslanded Avatar
15 months ago
Now let’s see if Epic drop their legal battle, considering they claim they were only doing it for the ‘little people’, and not themselves. I doubt it.
Score: 89 Votes (Like | Disagree)
PickUrPoison Avatar
15 months ago
This is huge, and is targeted at exactly the size of devs that can use it most.
Score: 65 Votes (Like | Disagree)
Macropanda Avatar
15 months ago
This is great. I’m a dev that doesn’t earn even close to that limit so very nice indeed.
Imagine getting near the end of the year and sitting at 990k income. Surely it would be better to pull the app and lose a bit to get the next year at 15%?
Wouldn’t it make sense to make the first 1m 15% and 30% for everything earned over 1m?
Score: 49 Votes (Like | Disagree)
berrymetal Avatar
15 months ago
That is freaking amazing!
Score: 48 Votes (Like | Disagree)
LeeW Avatar
15 months ago
Let's be honest here, Apple is positioning this to fend off the various actions and criticism against them, doing it in a way that it will cost them less. But, having said that, it's a big deal for the smaller developer, so it's a win. But they are not doing it by choice, its a forced action.
Score: 46 Votes (Like | Disagree)

Related Stories

play store google

Google to Lower Play Store Commission to 15% on First $1 Million Earned by Developers Per Year

Tuesday March 16, 2021 8:18 am PDT by
Google today announced that, starting July 1, it will be lowering its Play Store commission from 30% to 15% for the first $1 million of revenue developers earn using the Play Store billing system each year, as reported by TechCrunch. Google estimated that 99% of developers that sell goods and services with the Play Store billing system will see a 50% reduction in fees. This moves comes...
General Snapcaht Apps Feature 2

Snap is 'Happy' to Pay Apple's 30% Commission Rate, Says Evan Spiegel

Friday May 21, 2021 9:36 am PDT by
Snap CEO Evan Spiegel today told CNBC that his company is "happy" to pay Apple's 30 percent cut of in-app purchases because of the benefits that Apple provides with its software and hardware. We really feel like Snapchat wouldn't exist without the iPhone and without the amazing platform that Apple has created. In that sense, I'm not sure we have a choice about paying the 30% fee, and of...
app store 15 percent feature

Apple Shares Praise From Developers Happy With 15% App Store Fee Cut

Tuesday November 24, 2020 10:17 am PST by
Apple last week announced the launch of a new App Store Small Business Program that will see the company lowering its App Store fees for small business owners and independent developers. On January 1, 2021, all developers who earn less than $1 million from the App Store will pay a 15 percent commission to Apple instead of the standard 30 percent. Apple today shared a press release that has a ...
tile amazon sidewalk integration

Apple Says Tile Trackers Sold Poorly in Apple Stores

Friday May 14, 2021 4:53 am PDT by
Earlier last month, Spotify, Tile, and Match (owner of Tinder), testified at an app store antitrust hearing spearheaded by the U.S. Senate. During the hearing, Spotify called Apple's App Store "an abusive power grab," while Tile said Apple uses its platform to "unfairly limit competition for its products." Now, in response to their testimonies, Apple's vice president and chief compliance...
European Commisssion

Apple in Breach of EU Competition Law, European Commission Finds

Friday April 30, 2021 3:39 am PDT by
Apple has been found to be in breach of EU competition law with Apple Music, according to the preliminary findings of the European Commission. The charges relate to a two-year-old antitrust dispute initiated by Spotify. The European Commission was expected to bring charges against Apple over concerns that its App Store rules break EU competition law this week, and ahead of a formal verdict,...
fortnite apple featured

Epic Games vs. Apple Trial Begins With Opening Remarks Underway

Monday May 3, 2021 9:05 am PDT by
The first day of the bench trial between Fortnite creator Epic Games and Apple is officially underway, with the companies delivering opening remarks before District Judge Yvonne Gonzalez Rogers in a Northern California courtroom. The saga dates back to August 2020, when Apple removed Fortnite from the App Store after Epic Games introduced a direct payment option in the app for its in-game...
app store blue banner

App Store Ecosystem Responsible for Estimated $643 Billion in Billings and Sales in 2020, According to Apple-Commissioned Study

Wednesday June 2, 2021 10:00 am PDT by
The App Store ecosystem facilitated an estimated $643 billion in billings and sales in 2020, an increase of 24 percent year-over-year, according to an Apple-commissioned study done by Analysis Group economists. [PDF] The study, "A Global Perspective on the Apple App Store Ecosystem," comes as Apple awaits a decision in its ongoing trial with Epic Games, much of which focused on App Store...
app store blue banner

Apple Begins Lowering App Store Commission to 15% for Eligible Developers

Thursday December 24, 2020 4:34 pm PST by
Apple recently introduced a new Small Business Program that reduces the App Store's commission rate to 15% for developers earning up to $1 million per calendar year in net revenue from the sale of apps and in-app purchases. For developers exceeding the $1 million threshold, Apple's standard 30% commission rate still applies. Earlier this week, Apple began emailing eligible developers about...

Popular Stories

AirPods Pro Gen 3 Mock Feature Red

AirPods Pro 2 Could Start a New Accessory Ecosystem

Friday January 14, 2022 2:34 am PST by
Apple's second-generation AirPods Pro could arrive alongside a new series of accessories, recent leaked images suggest. Alleged leaked photos of the next-generation AirPods Pro obtained by MacRumors showed a charging case with a metal loop on the side for attaching a strap. Apple has not used this design for any of its other AirPod models and it is unclear why it would be added in this...
netflix2

Netflix Again Raises Prices for All Plans, 4K Streaming Now $20 Per Month

Friday January 14, 2022 12:46 pm PST by
Netflix today updated the prices for its streaming plans, and all of its offerings are now more expensive. The Basic plan is now priced at $9.99 per month, the Standard plan is priced at $15.49 per month, and the Premium plan is priced at $19.99 per month. The Basic plan is $1 more expensive, up from $8.99 per month. This plan allows users to watch on just one screen at a time, and it limits ...
iPhone 14 Mock pill and hole 16x9 120hz

Analyst: All iPhone 14 Models to Feature 120Hz Displays, 6GB of RAM, and More

Friday January 14, 2022 7:02 am PST by
Apple is rumored to announce four new iPhone 14 models in September, and ahead of time, analyst Jeff Pu has outlined his expectations for the devices. In a research note with Haitong International Securities, obtained by MacRumors, Pu claimed that all iPhone 14 models will feature ProMotion displays, compared to only Pro models currently. ProMotion enables a variable refresh rate up to 120Hz ...
ios 15

Apple Releases Minor iOS 15.2.1 and iPadOS 15.2.1 Updates

Wednesday January 12, 2022 10:05 am PST by
Apple today released minor 15.2.1 updates for iPhone and iPad users, and the software comes one month after Apple launched iOS 15.2 and iPadOS 15.2 with a slew of improvements. The iOS 15.2.1 and iPadOS 15.2.1 update can be downloaded for free and the software is available on all eligible devices over-the-air in the Settings app. To access the new software, go to Settings > General >...
maxresdefault

Hands-On With LG's 32-Inch UltraFine OLED Pro Display

Wednesday January 12, 2022 1:12 pm PST by
LG in December announced the launch of its new 2022 32-inch UltraFine OLED Pro display, and in our latest YouTube video, we went hands-on with it to see how it compares to Apple's Pro Display XDR and whether it might be worth picking up depending on the price point. Subscribe to the MacRumors YouTube channel for more videos. Officially named the "32BP95E," the display features a resolution of ...
iPad Pro Big Ol Logo Orange

Next iPad Pro Might Feature Large Glass Apple Logo to Allow Wireless Charging

Friday January 14, 2022 10:44 am PST by
Bloomberg's Mark Gurman and Debby Wu last year reported that Apple had tested a new iPad Pro with a glass back for wireless charging capabilities. In a recent edition of his newsletter, Gurman said he expects the new iPad Pro to be released in 2022. While the new iPad Pro is still on track to feature wireless charging, 9to5Mac's Filipe Espósito today reported that Apple may have ultimately...
iPhone 14 Mock pill and hole

iPhone 14 Pro Now Rumored to Feature Both Pill-Shaped and Circular Cutouts

Wednesday January 12, 2022 9:26 am PST by
Apple is widely expected to remove the notch on iPhone 14 Pro models, but there have been conflicting rumors about the new design. Early rumors suggested that Apple would adopt a hole-punch design with Face ID somehow moved completely under the display, and later it was rumored that there would be a pill-shaped cutout instead. Now, display industry consultant Ross Young has claimed that...
fortnite apple logo geforce feature

Fortnite Coming Back to iOS Soon Thanks to Nvidia's GeForce NOW Service

Thursday January 13, 2022 11:19 am PST by
With the Apple vs. Epic Games lawsuit continuing on, there are no signs that Apple has any intention of allowing popular battle royale game Fortnite to return to the App Store on iPhone and iPad. Epic Games has found a workaround though, by partnering up with Nvidia. GeForce NOW, Nvidia's streaming gaming service, will soon add Fortnite support, allowing Fortnite to be played through a...
iMac 27 inch 2020 sale

Deals: Apple's 21.5-Inch iMac Hits Record Low Price of $599.99 ($499 Off) [Update: Out of Stock]

Thursday January 13, 2022 4:05 am PST by
Amazon today has a great deal on the 2017 Intel 21.5-inch iMac (2.3GHz, 8GB RAM, 256GB SSD), priced at $599.99, down from $1,099.00. This is the best price we've ever tracked on this model, and it's only available at Amazon. The sale price will be reflected after an automatic coupon is applied at checkout. Note: MacRumors is an affiliate partner with some of these vendors. When you click a...