Apple Shares Praise From Developers Happy With 15% App Store Fee Cut

Apple last week announced the launch of a new App Store Small Business Program that will see the company lowering its ‌App Store‌ fees for small business owners and independent developers. On January 1, 2021, all developers who earn less than $1 million from the ‌App Store‌ will pay a 15 percent commission to Apple instead of the standard 30 percent.

app store 15 percent feature
Apple today shared a press release that has a long list of quotes from app developers who are pleased with the changes. Apple has said that the new ‌App Store‌ Small Business Program will benefit the "vast majority" of developers, providing them with more revenue to grow their teams and improve their apps.

From Christian Selig, developer of the Apollo app for Reddit:

"This made my morning. This will legitimately help so much. It'll make decisions like hiring on extra help, or acquiring better gear, going to conferences, doing more advertising, etc., much easier to justify, and it really means a lot to me that Apple is doing such an awesome thing! It's going to help my business a ton."

From Curtis Herbert, developer of Slopes Ski & Snowboard:

"I was very excited to wake up to the news. This translates to a 21 percent increase in revenue for us, which is huge. It lowers the bar for new developers trying to start a business. As COVID has hit many of us hard this year, this is a much-needed break that will help many of us weather the storm."

The quotes from Apple heap praise on the ‌App Store‌ fee drop, but some developers who earn more than $1 million from the ‌App Store‌ have been less pleased.

Spotify said that Apple's fee change demonstrates that "‌App Store‌ policies are arbitrary and capricious," while Epic Games CEO Tim Sweeney said that Apple is "gerrymandering the community with a patchwork of special deals" with the program.

Basecamp CTO David Heinemeier Hansson, known for his outspokenness over the "Hey" email app controversy, said that "Machiavelli would be proud" and that Apple was attempting to "paint any developer making more than $1m as greedy."

All app developers who earned under $1 million in 2020 qualify to join the program and get the reduced 15 percent commission rate, as do developers who are new to the ‌App Store‌. Apple's reduced commission applies to paid apps, in-app purchases, and subscriptions.

The fee changes don't benefit major companies like ‌Epic Games‌ and Spotify that have railed against Apple's ‌App Store‌ pricing, but it does provide relief for smaller app developers who have been struggling during the global health crisis.

Top Rated Comments

progx Avatar
26 months ago
While Apple isn't close to Epic's store rate, I think helping out the smaller companies is good win in this situation.

Of course, Epic will bellyache since it isn't helping them. They think Apple should be paying them, along with other software makers, they believe people are buying iPhones and iPad because of them. Yeah, I buy an iPhone just to play Fortnite and use ProtonMail ?
Score: 29 Votes (Like | Disagree)
szw-mapple fan Avatar
26 months ago

In my opinion prices won't get any cheaper though. They will take the extra profit.
That's... the whole point. It's about getting developer goodwill at the expense of a minor hit on Apple's profits. Nobody promised better prices.
Score: 29 Votes (Like | Disagree)
ChristianSelig Avatar
26 months ago
Hey I'm mentioned! Like legitimately, the 15% increase will make a massive difference in my life and in being able to do more things, so I really do appreciate that. It makes me excited for my other indie friends too who haven't been able to go full-time yet, who might now be able to, or at least be able to sooner.

(Also it's really cool to be in a press release haha)
Score: 16 Votes (Like | Disagree)
Wiesenlooser Avatar
26 months ago
This is a genius move by them. Only cutting to 15% for small developers. Essentially now it is just large corporates like Epic vs Apple, which is a morally much harder case who to side with in the public eye, alleviating pressure from them regarding regulatory intervention.

Part of why so many people sided with Epic was not because they liked Epic, but because of the feeling like Apple was nickle and dim-ing even small developer who just want to make a living.

Meanwhile, they are not losing that much revenue.
Score: 15 Votes (Like | Disagree)
vipergts2207 Avatar
26 months ago

Earn less than $1,000,000.00? Pay 15 percent commission.

Earn $1,000,000.00 or $1,000,000.01? Pay 30 percent commission.


Tim Cook was lying to Congress when he told Representative Henry Johnson, "We treat every developer the same."

This is clearly not the case when developers are paying different commission rates.
I believe it’s only 30% on the sales over $1M. The first $1M is still only 15%.
Score: 13 Votes (Like | Disagree)
NT1440 Avatar
26 months ago

Earn less than $1,000,000.00? Pay 15 percent commission.

Earn $1,000,000.00 or $1,000,000.01? Pay 30 percent commission.


Tim Cook was lying to Congress when he told Representative Henry Johnson, "We treat every developer the same."

This is clearly not the case when developers are paying different commission rates.
Are you saying Tim perjured himself? You understand how time works rights? One direction and all...
Score: 12 Votes (Like | Disagree)

Related Stories

iOS App Store General Feature Dock 2

Apple Defends App Store Changes in the Netherlands as Fines Reach €30 Million

Monday February 28, 2022 9:32 am PST by
Amid an ongoing dispute with the Authority for Consumers and Markets (ACM) in the Netherlands over the App Store, Apple has defended its plan to require app developers to submit an additional app binary for the Dutch storefront if they wish to use a third-party payment processing method. The ACM has ruled that Apple must allow dating apps in the Netherlands to use third-party payment...
app store blue banner epic 1

Epic Games CEO Renews Attack on Apple and Calls for Single, Universal App Store

Tuesday November 16, 2021 3:31 am PST by
Epic Games CEO Tim Sweeney has today renewed his attack on Apple and called for a single, universal app store that works across all platforms (via Bloomberg). Last year, Epic's popular game "Fortnite" became the subject of heated litigation with Apple and Google over the rate of commission on in-app purchases. After Epic broke App Store rules by implementing a direct payment option, the game ...
iOS App Store General Feature Dock 2

Apple Would Rather Pay Up to €50 Million in Fines Than Address 'Gatekeeper' App Store Behavior, Says EU Chief

Wednesday February 23, 2022 6:14 am PST by
Apple would rather pay a maximum of €50 million in fines than address concerns brought forward by the Dutch competition authority regarding developer access to third-party payment methods on the App Store, the EU's head of digital policy, Margrethe Vestager, has said. During a speech about the digital economy and privacy (via TechCrunch), Vestager said that Apple "essentially prefers paying...
app store blue banner

App Store Ecosystem Responsible for Estimated $643 Billion in Billings and Sales in 2020, According to Apple-Commissioned Study

Wednesday June 2, 2021 10:00 am PDT by
The App Store ecosystem facilitated an estimated $643 billion in billings and sales in 2020, an increase of 24 percent year-over-year, according to an Apple-commissioned study done by Analysis Group economists. [PDF] The study, "A Global Perspective on the Apple App Store Ecosystem," comes as Apple awaits a decision in its ongoing trial with Epic Games, much of which focused on App Store...
us subscription revenue 2021

Sensor Tower: iOS Users Spent $13.5 Billion on Top 100 Subscription Apps in 2021, Up 31% Year-on-Year

Friday February 25, 2022 3:21 am PST by
Consumer spending on the top 100 non-game subscription-based apps across mobile platforms grew 41% year-on-year to $18.3 billion in 2021, up from 13 billion in 2020, according to a new report from analytics firm Sensor Tower. According to the data, revenue from subscription apps purchased on the App Store and the Google Play Store represented around 14% of the $131.6 billion that consumers...
iOS App Store General Feature JoeBlue

Developers Now Able to Submit Claims for $250 to $30,000 Payments From Apple in Lawsuit Settlement

Friday January 14, 2022 12:24 pm PST by
Apple in August announced plans to pay $100 million to settle a class-action lawsuit levied by U.S. developers, and as of today, the website that will allow developers to submit a claim for a payout has gone live. The $100 million that Apple provided is being distributed as part of a "Small Developer Assistance Fund," and developers can claim between $250 and $30,000 based on their historic...
app store blue banner

Apple Letting 'Reader' Apps Offer Links for Account Sign Ups Outside of the App Store to Close Japan Investigation

Wednesday September 1, 2021 5:09 pm PDT by
Apple today announced that the Japan Fair Trade Commission (JFTC) has agreed to close its App Store investigation in exchange for changes to how "reader" apps like Netflix operate. Reader apps allow users to browse previously purchased content or content subscriptions for digital magazines, newspapers, books, audio, music, and video. Going forward, developers that create "reader" apps will...
maxresdefault

Hands On: Testing Fortnite on iOS Using GeForce NOW

Thursday February 17, 2022 11:54 am PST by
Fortnite has been unavailable to play on the iPhone and iPad since Apple banned it from the App Store in August 2020 amid an ongoing legal battle with Epic Games, but the battle royale game is coming back to iOS devices thanks to Nvidia's GeForce NOW gaming service. Subscribe to the MacRumors YouTube channel for more videos. GeForce NOW is a browser-based gaming service that will allow iPhone ...

Popular Stories

applefifthavenue

Man Robbed After Buying 300 iPhones From Apple Fifth Avenue

Tuesday November 29, 2022 11:54 am PST by
An unnamed 27-year-old man who purchased 300 iPhones from Apple Fifth Avenue on Monday morning was robbed shortly after leaving the store, according to 1010Wins Radio in New York. He was carrying 300 iPhone 13s in three bags and walking to his car at 1:45 a.m. when another car pulled up next to him. Two men jumped out and demanded that he hand over the bags. Not wanting to hand over 300...
app store awards 2021

Apple Announces 2022 App Store Award Winners, Highlighting Best Apps of the Year

Tuesday November 29, 2022 3:10 am PST by
Apple today announced its 2022 App Store Award winners, highlighting the 16 best apps and games selected by Apple's global App Store editorial team. The top apps were chosen by Apple for their quality, innovative technology, creative design, positive cultural impact, and ability to deliver "exceptional experiences." Apple CEO Tim Cook said: This year's App Store Award winners reimagined...
Cyber Monday Deals Feature 2022

Best Cyber Monday Apple Deals Still Available for AirPods, Apple TV, iPad, and More

Monday November 28, 2022 5:24 am PST by
The Black Friday and Cyber Monday holiday shopping rush is drawing to a close, but there are still some good deals to be had out there. For Apple products, many of the deals you've seen since last week are still available, though some have expired. So for anyone who missed out on Black Friday deals, there's still an opportunity to get some of the year's best prices on many Apple devices. Note: ...
iPhone 14 Pro Rear Camera

iPhone 15 to Use 'State-of-the-Art' Image Sensor From Sony for Better Low-Light Performance

Monday November 28, 2022 11:00 am PST by
Apple's upcoming iPhone 15 models will be equipped with Sony's newest "state of the art" image sensors, according to a report from Nikkei. Compared to standard sensors, Sony's image sensor doubles the saturation signal in each pixel, allowing it to capture more light to cut down on underexposure and overexposure. Nikkei says that it is able to better photograph a person's face even with...
eufy camera

Anker's Eufy Cameras Caught Uploading Content to the Cloud Without User Consent [Updated]

Tuesday November 29, 2022 1:01 pm PST by
Anker's popular Eufy-branded security cameras appear to be sending some data to the cloud, even when cloud storage is disabled and local only storage settings are turned on. The information comes from security consultant Paul Moore, who last week published a video outlining the issue. According to Moore, he purchased a Eufy Doorbell Dual, which was meant to be a device that stored video...
rapid security response

Apple Releases Another Rapid Security Response Update for iOS 16.2 Beta Users

Monday November 28, 2022 10:16 am PST by
Apple today released a Rapid Security Response update that is available for those running the iOS 16.2 beta, marking the launch of the second RSR update since the feature was released in iOS 16. The Rapid Security Response Update is designed to provide iOS 16.2 beta users with bug fixes without the need to install a full update. The initial RSR release for iOS 16.2 beta users was a test with ...
Apple Watch Ultra Oceanic Plus App

Apple Announces Oceanic+ App Now Available for Apple Watch Ultra

Monday November 28, 2022 6:11 am PST by
Apple today announced that the Oceanic+ app is available for the Apple Watch Ultra starting today. Designed by Huish Outdoors in collaboration with Apple, the app serves as a dive computer for recreational scuba diving at depths up to 40 meters/130 feet. Apple already offers a basic Depth app on the Apple Watch Ultra for viewing your current depth, maximum depth reached, water temperature,...
14 vs 16 inch mbp m2 pro and max feature 1

'M2 Max' Geekbench Scores Leak Online, Revealing Rumored Specs and Performance

Wednesday November 30, 2022 2:39 am PST by
Geekbench scores allegedly for the upcoming "M2 Max" chip have surfaced online, offering a closer look at the performance levels and specific details of the forthcoming Apple silicon processor. The Geekbench results, first spotted on Twitter, are for a Mac configuration of with the M2 Max chip, a 12-core CPU, and 96GB of memory. The Mac listed has an identifier "Mac14,6," which could be...
iphone 11 tesla cybertruck close up

Elon Musk Pledges to Build iPhone Rival If Apple Ousts Twitter

Tuesday November 29, 2022 2:48 am PST by
Elon Musk has pledged to offer an "alternative phone" if Apple and Google remove Twitter from their app stores, adding to long-standing rumors about an iPhone rival from Tesla. Modified iPhone 11 Pro in the style of the Tesla Cybertruck, by Caviar. Musk's remark came after being asked about the potential scenario of Twitter being removed from app stores, which could conceivably happen if the...
iOS 16

Apple Releases iOS 16.1.2 With Carrier Improvements and Crash Detection Optimizations

Wednesday November 30, 2022 10:09 am PST by
Apple today released iOS 16.1.2, another minor bug fix update that comes one week after the release of iOS 16.1.1 and three weeks after the launch of iOS 16.1, an update that added support for iCloud Shared Photo Library, Matter, Live Activities, and more. The iOS 16.1.2 update can be downloaded on eligible iPhones over-the-air by going to Settings > General > Software Update. According...