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

iOS 26 on Three iPhones

iOS 26's Liquid Glass Design Draws Criticism From Users

Wednesday September 17, 2025 2:56 pm PDT by
It's been two days since iOS 26 was released, and Apple's new Liquid Glass design is even more divisive than expected. Any major design change can create controversy as people get used to the new look, but the MacRumors forums, Reddit, Apple Support Communities, and social media sites seem to feature more criticism than praise as people discuss the update. Complaints There are a long...
iOS 26

iOS 26.1 to iOS 26.4: Here Are 5 New Features to Expect on Your iPhone

Tuesday September 16, 2025 11:17 am PDT by
iOS 26 was finally released on Monday, but the software train never stops, and the first developer beta of iOS 26.1 will likely be released soon. iOS 18.1 was an anomaly, as the first developer beta of that version was released in late July last year, to allow for early testing of Apple Intelligence features. The first betas of iOS 15.1, iOS 16.1, and iOS 17.1 were all released in the second ...
M6 MacBook Pro Feature 1

Apple's Rumored MacBook Pro Redesign: 6 New Features Anticipated

Wednesday September 17, 2025 4:26 am PDT by
Apple in October 2024 overhauled its 14-inch and 16-inch MacBook Pro models, adding M4, M4 Pro, and M4 Max chips, Thunderbolt 5 ports on higher-end models, display changes, and more. That's quite a lot of updates in one go, but if you think this means a further major refresh for the ‌MacBook Pro‌ is now several years away, think again. Bloomberg's Mark Gurman has said he expects only a small ...
iOS 26 Glass Feature

iOS 26: The Top 100 New Features and Changes

Tuesday September 16, 2025 12:26 pm PDT by
Apple released iOS 26 on September 15, and it's now available for all iPhone users with a compatible device. There are a lot of changes and features to learn about, so if you want a quick, easy-to-read list that outlines what's new, we've got you covered. Design Liquid Glass design that reflects light and refracts what's underneath. It's system wide, with dynamic tab bars and toolbars...
ios 26 liquid glass dark mode

iOS 26 Liquid Glass Design Makes App Icons Look Crooked, Report Users

Wednesday September 17, 2025 4:55 am PDT by
iOS 26's new Liquid Glass interface has been criticized for making some content illegible in certain circumstances, and now the UI design is reportedly causing another unusual visual problem for some users. Liquid Glass adds subtle glowing effects to the corners of app icons, creating a dynamic glass-like appearance with depth and parallax effects. However, as noted by Gizmodo, this design...
iPhone 17 Pro and Air Feature

Two iPhone 17 Pro and iPhone Air Colors Appear to Scratch More Easily

Friday September 19, 2025 10:02 am PDT by
As reported by Bloomberg today, some of the new iPhone 17 Pro and iPhone Air models on display at Apple Stores today are already scratched and scuffed. French blog Consomac also reported on this topic. The scratches appear to be most prominent on models with darker finishes, including the iPhone 17 Pro and Pro Max in Deep Blue, and the iPhone Air in Space Black. Images Credit: Consoma ...
AirPods Pro Firmware Feature

AirPods Pro 2 and AirPods 4 Get iOS 26 Features With New Firmware Update

Monday September 15, 2025 10:50 am PDT by
Apple today released updated firmware for the AirPods Pro 2 and the AirPods 4, introducing support for the new AirPods features that are included in iOS 26, iPadOS 26, and macOS Tahoe. The firmware has a build number of 8A356, and it replaces the current 7E93 firmware. With Apple's new software updates, the AirPods Pro 2 and the AirPods 4 support better audio quality for phone calls and...

Top Rated Comments

Coconut Bean Avatar
63 months ago
EPIC!!!!

Or well, not for EPIC. LoL.
Score: 110 Votes (Like | Disagree)
Davehaslanded Avatar
63 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
63 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
63 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
63 months ago
That is freaking amazing!
Score: 48 Votes (Like | Disagree)
LeeW Avatar
63 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)