Apple announces App Store Small Business Program that launches Jan. 1, 2020

Apple has announced a new developer program “to accelerate innovation and help small businesses and independent developers propel their businesses forward with the next generation of groundbreaking apps on the App Store.”

Apple CEO Tim Cook says 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% commission if they earned up to $1 million in proceeds during the previous calendar year.

The App Store Small Business Program will launch on January 1, 2021. Its reduced commission means small developers and aspiring entrepreneurs will have more resources to invest in and grow their businesses in the App Store ecosystem, according to Apple.

In 2019 alone, the App Store ecosystem facilitated US$519 billion in commerce worldwide — with over 85% of that total accruing solely to third-party developers and businesses of all sizes, according to Apple. The App Store, which launched in 2008, currently offers 1.8 million apps and is visited by half a billion people each week.