Apple to cut App Store commission for small developers to 15%

Apple to cut App Store commission for small developers to 15% image
By Gamesforum Staff 19 November 2020

By Gamesforum Staff

Apple have announced a reduced 15% commission in the App Store for app developers who earned up to $1 million during the previous calendar year. The existing 30% commission will remain in place for developers who exceeded $1 million in post-commission earnings.

Full details of Apple’s App Store Small Business Program won’t be available till December but the company has announced the qualifying criteria as follows:

  • 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 CEO Tim Cook stated, “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. 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.”

The program is expected to benefit the majority of publishers on the App Store.

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