Apple reducing App Store cut to 15% for ‘vast majority’ of developers

That’s down from 30%, a huge break for developers.

What you need to know

  • Apple is reducing its App Store commission rate for the ‘vast majority’ of developers.
  • It will now take 15 percent instead of 30 from developers who earn up to $1 million a year.

In huge developer news, Apple has today announced it will reduce its App Store commission rate from 30% to 15% for small businesses who earn up to $1 million a year in revenue.

In a press release today the company stated:

Apple today announced an industry-leading 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. 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 program will launch on January 1, 2021. Apple says the move will benefit “the vast majority of developers” who sell digital goods and services on the App Store. Apple said “comprehensive details” would come next month, but outlined the following:

  • 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.

Apple says the standard 30% rate will remain in place for anyone earning more than $1 million in proceeds.

You can read the full report here.

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Apple reducing App Store cut to 15% for ‘vast majority’ of developers

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