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

airpods pro 3 purple

New, Higher End AirPods Pro Coming This Year

Tuesday January 20, 2026 9:05 am PST by
Apple is planning to debut a high-end secondary version of AirPods Pro 3 this year, sitting in the lineup alongside the current model, reports suggest. Back in September 2025, supply chain analyst Ming-Chi Kuo reported that Apple is planning to introduce a successor to the AirPods Pro 3 in 2026. This would be somewhat unusual since Apple normally waits around three years to make major...
iOS 27 Mock Quick

iOS 27 Will Add These 8 New Features to Your iPhone

Sunday January 18, 2026 3:51 pm PST by
iOS 27 is still many months away, but there are already plenty of rumors about new features that will be included in the software update. The first beta of iOS 27 will be released during WWDC 2026 in June, and the update should be released to all users with a compatible iPhone in September. Bloomberg's Mark Gurman said that iOS 27 will be similar to Mac OS X Snow Leopard, in the sense...
14 inch MacBook Pro Keyboard

MacBook Pro Buyers Now Facing Up to a Two-Month Wait Ahead of New Models

Sunday January 18, 2026 6:50 pm PST by
MacBook Pro availability is tightening on Apple's online store, with select configurations facing up to a two-month delivery timeframe in the United States. A few 14-inch and 16-inch MacBook Pro configurations with an M4 Pro chip are not facing any shipping delay, but estimated delivery dates for many configurations with an M4 Max chip range from February 6 to February 24 or even later. At...
smaller dynamic island iphone 18 pro Filip Vabrous%CC%8Cek

iPhone 18 Pro Leak: Smaller Dynamic Island, No Top-Left Camera Cutout

Tuesday January 20, 2026 2:34 am PST by
Over the last few months, rumors around the iPhone 18 Pro's front-panel design have been conflicted, with some supply-chain leaks pointing to under-display Face ID, reports suggesting a top-left hole-punch camera, and debate over whether the familiar Dynamic Island will shrink, shift, or disappear entirely. Today, Weibo-based leaker Instant Digital shared new details that appear to clarify the ...
iPhone Top Left Hole Punch Face ID Feature Purple

iPhone 18 Pro Launching Later This Year With These 12 New Features

Thursday January 15, 2026 10:56 am PST by
While the iPhone 18 Pro and iPhone 18 Pro Max are not expected to launch for another eight months, there are already plenty of rumors about the devices. Below, we have recapped 12 features rumored for the iPhone 18 Pro models, as of January 2026: The same overall design is expected, with 6.3-inch and 6.9-inch display sizes, and a "plateau" housing three rear cameras Under-screen Face ID...

Top Rated Comments

Coconut Bean Avatar
68 months ago
EPIC!!!!

Or well, not for EPIC. LoL.
Score: 110 Votes (Like | Disagree)
Davehaslanded Avatar
68 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
68 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
68 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
68 months ago
That is freaking amazing!
Score: 48 Votes (Like | Disagree)
LeeW Avatar
68 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)