Apple Drops App Store Fees to 15% for All Developers Making Under $1 Million From App Store - MacRumors
Skip to Content

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 Duo Slack

Apple Announces iPhone Duo Apps Can Now Be Submitted to App Store

Monday October 5, 2026 7:15 pm PDT by
Apple today announced that apps optimized for the iPhone Duo can now be submitted for App Store approval, ahead of the foldable device launching on Friday, October 23. While existing App Store apps will automatically run on the iPhone Duo, only apps built with the iOS 27.1 SDK or later can dynamically resize to fill the entire space of the inner display, whereas unoptimized apps will have...
App Store Indie Games Week

Apple Announces 'Indie Games Week' on App Store

Monday October 12, 2026 7:48 am PDT by
Apple today announced it is Indie Games Week on the App Store, in celebration of the "incredible catalog of imaginative games made by independent teams with big dreams." Apple said seven acclaimed indie games are debuting on the App Store. No Man's Sky will be making its mobile debut on iPhone and iPad on October 28, and the six other games are Sifu, Vampire Crawlers, Little Kitty, Big City, 9 ...
Apple HomeView lineup feature1

Apple Announces 'HomeView' Smart Home Hub

Tuesday October 13, 2026 6:00 am PDT by
Apple today announced the "HomeView," an all-new kind of smart home hub featuring a 7-inch Liquid Retina display and Siri AI. Apple's senior vice president of Worldwide Marketing Greg Joswiak said: Apple HomeView is designed to be shared by everyone in the home yet feel completely personal to each user. It recognizes your face to shift from a household screen to your own experience,...

Top Rated Comments

77 months ago
EPIC!!!!

Or well, not for EPIC. LoL.
Score: 110 Votes (Like | Disagree)
Davehaslanded Avatar
77 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
77 months ago
This is huge, and is targeted at exactly the size of devs that can use it most.
Score: 65 Votes (Like | Disagree)
77 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
77 months ago
That is freaking amazing!
Score: 48 Votes (Like | Disagree)
LeeW Avatar
77 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)
Latest Stories
iPhone 18 Pro vs. iPhone Duo Buyer's Guide: Which Should You Choose?
iPhone 18 Pro vs. iPhone Duo Buyer's Guide: Which Should You Choose?
2 minutes ago
Apple Store Down Ahead of iPhone Duo Pre-Orders
Apple Store Down Ahead of iPhone Duo Pre-Orders
19 minutes ago
Oops, Apple's Website Just Hinted at iPad Mini 8
Oops, Apple's Website Just Hinted at iPad Mini 8
9 hours ago
OLED MacBook Pro Won't Get M7 Chips Until Late 2027
OLED MacBook Pro Won't Get M7 Chips Until Late 2027
12 hours ago
Apple Pledged $25 Million to Trump's White House Ballroom
Apple Pledged $25 Million to Trump's White House Ballroom
13 hours ago
Touchscreen MacBook Pro Could Launch on November 6
Touchscreen MacBook Pro Could Launch on November 6
15 hours ago
New Withings Users Must Pay $99/Year for Apple Health Syncing
New Withings Users Must Pay $99/Year for Apple Health Syncing
15 hours ago
Meta and Apple Bring Muse Spark Open AI Model to Mac Studio
Meta and Apple Bring Muse Spark Open AI Model to Mac Studio
16 hours ago
iPad Mini 8: Apple Has Tested Both 60Hz and 120Hz ProMotion Displays
iPad Mini 8: Apple Has Tested Both 60Hz and 120Hz ProMotion Displays
16 hours ago
Apple TV 4K 2022 vs. 2026 Buyer's Guide: All Differences Compared
Apple TV 4K 2022 vs. 2026 Buyer's Guide: All Differences Compared
18 hours ago
Apple CEO John Ternus on Early Foldables: 'Kind of Cheap and Crappy'
Apple CEO John Ternus on Early Foldables: 'Kind of Cheap and Crappy'
19 hours ago
Greg Joswiak Says Apple Isn't Focused on Making AI for 'Lunatic Fringe'
Greg Joswiak Says Apple Isn't Focused on Making AI for 'Lunatic Fringe'
19 hours ago
Amazon Offers $120 Discount on AirPods Max 2, $50 Off AirPods Pro 3
Amazon Offers $120 Discount on AirPods Max 2, $50 Off AirPods Pro 3
20 hours ago
Apple CEO John Ternus Featured on Cover of TIME Magazine: 'New Era'
Apple CEO John Ternus Featured on Cover of TIME Magazine: 'New Era'
20 hours ago
Apple Announces Deadline to 'Get Ready' to Pre-Order the iPhone Duo
Apple Announces Deadline to 'Get Ready' to Pre-Order the iPhone Duo
21 hours ago
MKBHD is 'Not Convinced' About Apple's New HomeView, Here's Why
MKBHD is 'Not Convinced' About Apple's New HomeView, Here's Why
21 hours ago
Apple's Wall-Mounted HomeView Ships Without a Power Adapter
Apple's Wall-Mounted HomeView Ships Without a Power Adapter
22 hours ago
Rare Apple-1 With Steve Jobs Letter Sells for $1.15 Million
Rare Apple-1 With Steve Jobs Letter Sells for $1.15 Million
22 hours ago
Apple Now Inviting Media to October 28 'Launch Experience'
Apple Now Inviting Media to October 28 'Launch Experience'
23 hours ago
iPhone Duo's A20 Pro Chip Benchmarked Ahead of Launch
iPhone Duo's A20 Pro Chip Benchmarked Ahead of Launch
1 day ago
10 HomeView Features You Might Have Missed
10 HomeView Features You Might Have Missed
1 day ago
Apple Becomes Second Company to Close Above $5 Trillion
Apple Becomes Second Company to Close Above $5 Trillion
1 day ago
Which Apple Home Devices Get Siri AI, and When
Which Apple Home Devices Get Siri AI, and When
2 days ago
Apple's Long-Delayed HomeView Was Already Being Tested in 2024
Apple's Long-Delayed HomeView Was Already Being Tested in 2024
2 days ago
Apple Intelligence Coming to China in December With iOS 27.3
Apple Intelligence Coming to China in December With iOS 27.3
2 days ago
Apple Invites App Updated With Two New Features
Apple Invites App Updated With Two New Features
2 days ago
OpenAI Says Ex-Employee Showed Its Device Plans to Apple
OpenAI Says Ex-Employee Showed Its Device Plans to Apple
2 days ago
Discover the Best Cases and Screen Protectors for Your New iPhone Duo
Discover the Best Cases and Screen Protectors for Your New iPhone Duo
2 days ago
Apple Store Near Los Angeles Closed Due to 'Events Beyond Our Control'
Apple Store Near Los Angeles Closed Due to 'Events Beyond Our Control'
2 days ago
No, HomePod Mini 1 Won't Support Siri AI as CNET Reported
No, HomePod Mini 1 Won't Support Siri AI as CNET Reported
2 days ago