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 models

No iPhone 18 Launch This Year, Reports Suggest

Thursday January 1, 2026 8:43 am PST by
Apple is not expected to release a standard iPhone 18 model this year, according to a growing number of reports that suggest the company is planning a significant change to its long-standing annual iPhone launch cycle. Despite the immense success of the iPhone 17 in 2025, the iPhone 18 is not expected to arrive until the spring of 2027, leaving the iPhone 17 in the lineup as the latest...
duolingo ad live activity

Duolingo Used iPhone's Dynamic Island to Display Ads, Violating Apple Design Guidelines

Friday January 2, 2026 1:36 pm PST by
Language learning app Duolingo has apparently been using the iPhone's Live Activity feature to display ads on the Lock Screen and the Dynamic Island, which violates Apple's design guidelines. According to multiple reports on Reddit, the Duolingo app has been displaying an ad for a "Super offer," which is Duolingo's paid subscription option. Apple's guidelines for Live Activity state that...
samsung crease less foldable display ces 2026%402x

Foldable iPhone's Crease-Free Display Tech Spotted at CES 2026

Tuesday January 6, 2026 3:04 am PST by
CES 2026 has just provided a first glimpse of the folding display technology that Apple is expected to use in its upcoming foldable iPhone. At the event, Samsung Display briefly showcased its new crease-less foldable OLED panel beside a Galaxy Z Fold 7, and according to SamMobile, which saw the test booth before it was abruptly removed, the new panel "has no crease at all" in comparison. The ...
Low Cost A18 Pro MacBook Feature Pink

Apple's 2026 Low-Cost A18 Pro MacBook: What We Know So Far

Friday January 2, 2026 4:33 pm PST by
Apple is planning to release a low-cost MacBook in 2026, which will apparently compete with more affordable Chromebooks and Windows PCs. Apple's most affordable Mac right now is the $999 MacBook Air, and the upcoming low-cost MacBook is expected to be cheaper. Here's what we know about the low-cost MacBook so far. Size Rumors suggest the low-cost MacBook will have a display that's around 13 ...
govee floor lamp

CES 2026: Govee Announces New Matter-Connected Ceiling and Floor Lights

Sunday January 4, 2026 5:00 am PST by
Govee today introduced three new HomeKit-compatible lighting products, including the Govee Floor Lamp 3, the Govee Ceiling Light Ultra, and the Govee Sky Ceiling Light. The Govee Floor Lamp 3 is the successor to the Floor Lamp 2, and it offers Matter integration with the option to connect to HomeKit. The Floor Lamp 3 offers an upgraded LuminBlend+ lighting system that can reproduce 281...
airpods pro 3 glitter

AirPods New Year's Deals Include Up to $99 Off AirPods Max, AirPods Pro 3, and AirPods 4

Sunday January 4, 2026 8:04 am PST by
Now that the calendar has flipped over into January, steep discounts on popular Apple products have become more rare after the holidays. However, if you didn't get a new pair of AirPods recently and are looking for a model on sale, Amazon does have a few solid second-best prices this week. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a...
Belkin 25W Battery magnetic

CES 2026: Belkin Announces Magnetic Ring Power Bank, Modular Dock, and More

Sunday January 4, 2026 3:02 pm PST by
Belkin today announced a range of new charging and connectivity accessories at CES 2026, expanding its portfolio of products aimed at Apple device users. UltraCharge Pro Power Bank 10K with Magnetic Ring The lineup includes new Qi2 and Qi2.2 wireless chargers, magnetic power banks, a high-capacity laptop battery, and USB-C productivity accessories, with an emphasis on higher charging...
AirPods Pro 3 Year of the Horse Feature

Apple Launches Year of the Horse AirPods Pro 3 for Lunar New Year

Monday January 5, 2026 11:28 am PST by
Apple has designed a limited edition version of the AirPods Pro 3 to celebrate Lunar New Year, and customers in select countries can purchase them starting today. The Year of the Horse Special Edition AirPods Pro 3 feature a unique horse emoji character that's otherwise unavailable. Customers in China, Hong Kong, Taiwan, Malaysia, and Singapore are able to buy the AirPods, and they'll be...

Top Rated Comments

Coconut Bean Avatar
67 months ago
EPIC!!!!

Or well, not for EPIC. LoL.
Score: 110 Votes (Like | Disagree)
Davehaslanded Avatar
67 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
67 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
67 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
67 months ago
That is freaking amazing!
Score: 48 Votes (Like | Disagree)
LeeW Avatar
67 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)