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.

Popular Stories

iPhone 17 Pro Render Front Page Tech

iPhone 17 Pro Launching Later This Year With These 10 New Features

Sunday March 23, 2025 10:00 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. iPhone 17 Pro's alleged design via Front Page Tech Below, we recap key changes rumored for the iPhone 17 Pro models as of March 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone...
iCloud General Feature Redux

iPhone Users Who Pay for iCloud Storage Receive a New Perk

Thursday March 20, 2025 12:01 am PDT by
If you pay for iCloud storage on your iPhone, Apple has a new perk for you, at no additional cost. The new perk is the ability to create invitations in the Apple Invites app for the iPhone, which launched in the App Store last month. In the Apple Invites app, iCloud+ subscribers can create invitations for any occasion, such as birthday parties, graduations, baby showers, and more. Anyone ...
iOS 18

Top 5 New Features Coming in iOS 18.4

Friday March 21, 2025 3:26 pm PDT by
We're not getting new Siri Apple Intelligence features in iOS 18.4 as expected, but the upcoming update does have quite a few new additions that will be worth upgrading for. We've rounded up the five best features to look forward to, and if you're not running the beta, you can expect to get access to these in early April. Priority Notifications If you have an iPhone or iPad that supports...
Generic iOS 19 Feature Mock

iOS 19 Coming in June With These New Features

Thursday March 20, 2025 2:04 pm PDT by
While the first iOS 19 beta is still more than two months away, there are already plenty of rumors about the upcoming software update. Below, we recap the key iOS 19 rumors so far. visionOS-Like Design In January, the YouTube channel Front Page Tech revealed a redesigned Camera app that is allegedly planned for iOS 19. According to Front Page Tech host Jon Prosser, the Camera app...
Generic iOS 18

Apple Seeds iOS 18.4 and iPadOS 18.4 Release Candidate With Priority Notifications, Ambient Music and More

Monday March 24, 2025 10:07 am PDT by
Apple today seeded the release candidate versions of upcoming iOS 18.4 and iPadOS 18.4 updates to developers for testing purposes, with the software coming a week after Apple released the fourth betas. iOS 18.4 and iPadOS 18.4 can be downloaded from the Settings app on a compatible device by going to General > Software Update. With iOS 18.4, Apple is adding the Priority Notifications...
airpods max 2024 colors

Don't Buy Into Apple's Hype About AirPods Max Gaining Lossless Audio

Monday March 24, 2025 4:24 pm PDT by
Apple today announced that AirPods Max with a USB-C port will be gaining support for lossless audio and ultra-low latency audio with a firmware update next month, alongside the release of iOS 18.4, iPadOS 18.4, and macOS 15.4. For context, audio files are typically compressed to keep file sizes smaller. There are lossy compression standards like MP3, and Apple's own Advanced Audio Codec...
Foldable iPhone 2023 Feature Iridescent Search

Foldable iPhone Expected to Launch Next Year, Costing Around $2,000

Monday March 24, 2025 3:43 am PDT by
Apple will launch its long-rumored foldable iPhone next year with a ~$2,000 premium price tag attached, expects well-connected Bloomberg reporter Mark Gurman. Gurman's comments on Apple's launch plans for its first foldable device appeared in the Q&A section of his latest Power On newsletter. Earlier this month, the reporter said Apple's foldable iPhone could be arriving "as early as 2026,"...
iOS 19 Rounded UI Elements Light

iOS 19: What to Expect From Apple's Dramatic Design Overhaul?

Monday March 24, 2025 9:47 am PDT by
Earlier this month, Bloomberg reported that Apple is planning "one of the most dramatic software overhauls in the company's history" – an update that aims to bring iOS, iPadOS, and macOS into closer visual alignment. The redesign is said to be "loosely based" on visionOS, the software behind Apple's Vision Pro headset, and will reportedly update the look of icons, menus, apps, windows, and...

Top Rated Comments

Coconut Bean Avatar
57 months ago
EPIC!!!!

Or well, not for EPIC. LoL.
Score: 110 Votes (Like | Disagree)
Davehaslanded Avatar
57 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
57 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
57 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
57 months ago
That is freaking amazing!
Score: 48 Votes (Like | Disagree)
LeeW Avatar
57 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)