Apple is to launch the App Store Small Business developer Program, halving the commission it takes from the sale of apps and virtual goods sold within them from many of the smaller developers using its stores.
From January, any existing app-maker who earned $1m (£830,000) or less from Apple’s marketplaces in 2020 will only have to give up a 15% cut in 2021, compared to the standard rate of 30%.
While the comprehensive details will be released in early December, the essentials of the program’s participation criteria are easy and streamlined:
- 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.
In a statement, Apple CEO Tim Cook emphasizes that the App Store has led to millions of new jobs in support of the global economy:
“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.”
The App Store’s standard commission rate of 30 percent remains in place for apps selling digital goods and services and making more than $1 million in proceeds, defined as a developer’s post-commission earnings.
