Apple Starts Accepting Developers Into Small Business Program

by

Apple has started contacting eligible developers to inform them that they have been accepted into the Small Business Program, which allows developers to benefit from significantly reduced App Store fees.

small business program accepted

In November, Apple announced the Small Business Program, which sees ‌App Store‌ fees slashed to just 15 percent for developers earning under one million dollars per calendar year. Developers have been able to sign up to the Small Business Program since Thursday, December 3, and according to emails shared with MacRumors, Apple has now begun notifying developers if they have been accepted.

All developers who earned under one million dollars in 2020 are able to qualify for the program and the reduced 15 percent commission rate, and new developers who join in 2021 will also qualify. Going forward, developers who earn up to one million dollars in the prior calendar year will be able to participate. The ‌App Store‌ commission remains at 30 percent for developers making over one million dollars per year.

The program has since received praise from many developers, but some larger developers such as Spotify and Epic Games have criticized the move, saying it undermines the ‌App Store‌'s rules.

Apple says that the program will be available to the vast 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.

Top Rated Comments

DanielDD Avatar
DanielDD
8 months ago
I personally think Apple should apply the 15% rate for the first million, and 30% for any revenue after that. That way there's no need to register nor a need to have an approval process. But this is a step in the right direction :)
Score: 14 Votes (Like | Disagree)
subi257 Avatar
subi257
8 months ago

The fact that any "shop" can charge 30% is stupid. App Store, Steam, etc. Apple smelled that the EU legislation monster was waking up to do what the US government was unwilling or incapable of doing - keeping the markets fair.
Do you have any idea what it costs to run and maintain the backend infrastructure? storage servers (servers at that level have a 3-5 year life), The electric it takes to run said servers and the electric for the A/C to keep them cool? Running a business like that is not a retail store. I responsible for support of a video server system for video editing in a video production/post production and a chassis of 200TB gets EOL'd every 4-5 years....at $103k each and we have 4 of them. I can't even imagine how many EXEBYTES they have. We also use 'AWS S3 buckets' for some online editing capabilities and it cost 10's of thousands a year. I am told by some freelance engineers that I know who work in broadcast that the NFL has around 4 petabytes of storage and MLB has around 11 petabytes.

As far as "keeping the markets fair" not to sound like an ******* but, if run a business and it's mine, who is anybody to tell me what I can charge and be allowed to make. It's my business and if you don't like my prices go somewhere else. If I can't charge what I want, I could say screw it and shut it down.....just my thought as a business in a capitalist country, not saying it's right or not.
Score: 13 Votes (Like | Disagree)
Brandon42 Avatar
Brandon42
8 months ago

The fact that any "shop" can charge 30% is stupid. App Store, Steam, etc. Apple smelled that the EU legislation monster was waking up to do what the US government was unwilling or incapable of doing - keeping the markets fair.
You’d hate to find out how little coffee farmers get paid for the coffee beans that make your coffee then.
Score: 11 Votes (Like | Disagree)
Apple Knowledge Navigator Avatar
Apple Knowledge Navigator
8 months ago
Pity it took a lawsuit to make this happen
Score: 9 Votes (Like | Disagree)
KENPHOTO Avatar
KENPHOTO
8 months ago

The fact that any "shop" can charge 30% is stupid. App Store, Steam, etc. Apple smelled that the EU legislation monster was waking up to do what the US government was unwilling or incapable of doing - keeping the markets fair.
Lol, the mark up on software in brick and mortar stores meant developers got a lot less than 70%. No one seems to mention that Apple wears the costs of iTunes card sales as well. If you buy an iTunes card at 20% off, that 20% discount doesn’t come out of my 70%, it comes out of Apple’s.
Score: 9 Votes (Like | Disagree)
Brandon42 Avatar
Brandon42
8 months ago

The fact the commission rate goes up the more successful you are is asinine.
It is not an uncommon practice. Think of it as a discount and then the normal rate begins. Many platforms offer a discounted starting tier. Microsoft and Amazon cloud computing are both good examples.
Score: 7 Votes (Like | Disagree)
Read All Comments

Top Stories

tile amazon sidewalk integration

Apple Says Tile Trackers Sold Poorly in Apple Stores

Friday May 14, 2021 4:53 am PDT by
Earlier last month, Spotify, Tile, and Match (owner of Tinder), testified at an app store antitrust hearing spearheaded by the U.S. Senate. During the hearing, Spotify called Apple's App Store "an abusive power grab," while Tile said Apple uses its platform to "unfairly limit competition for its products." Now, in response to their testimonies, Apple's vice president and chief compliance...
Read Full Article • 153 comments
app store 15 percent feature

Apple Now Letting Developers Enroll for Reduced 15% App Store Fees

Thursday December 3, 2020 10:30 am PST by
Apple in November announced a new App Store Small Business Program that lowers App Store fees for small business owners and independent developers to 15 percent, down from the standard 30 percent. The program is set to launch on January 1, 2021, and as of today, eligible developers are able to sign up. Apple has launched an App Store Small Business Program website that has all of the...
Read Full Article • 76 comments
app store 15 percent feature

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

Tuesday November 24, 2020 10:17 am PST by
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. Apple today shared a press release that has a ...
Read Full Article • 178 comments
play store google

Google to Lower Play Store Commission to 15% on First $1 Million Earned by Developers Per Year

Tuesday March 16, 2021 8:18 am PDT by
Google today announced that, starting July 1, it will be lowering its Play Store commission from 30% to 15% for the first $1 million of revenue developers earn using the Play Store billing system each year, as reported by TechCrunch. Google estimated that 99% of developers that sell goods and services with the Play Store billing system will see a 50% reduction in fees. This moves comes...
Read Full Article • 100 comments
app store 15 percent feature

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

Wednesday November 18, 2020 3:00 am PST by
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. The 15 percent commission...
Read Full Article • 381 comments
Apple UK iOS app economy has a breakthrough year 031421 big

App Store Supports Over 830,000 Jobs in UK, Germany, and France, Says Apple

Monday March 15, 2021 1:53 am PDT by
Apple says its App Store now supports more than 330,000 jobs in the U.K., a 10% increase over the past year, despite the pressures of the global health crisis on the nation's economy. According to Apple, 2020 was a "breakthrough year" for the iOS app economy, with developers in the U.K. generating more than £3.6 billion in total earnings, which represents 22% in growth compared to the...
Read Full Article • 72 comments
app store blue banner

Apple Execs Discussed Not 'Leaving Money on the Table' When Deciding Apple TV Subscription Fees

Wednesday January 27, 2021 3:38 am PST by
Apple executive emails revealed in the Epic Games vs. Apple lawsuit highlight how the company came to its conclusion to take a 30% cut on all App Store transactions in a way that ensured it wasn't "leaving money on the table." One email thread from 2011, spotted by The Verge, features Apple services chief Eddy Cue discussing the commission that the company should charge providers for content ...
Read Full Article • 96 comments
fortnite apple featured

Apple's Phil Schiller Takes the Stand in Epic Games v. Apple Trial

Monday May 17, 2021 12:17 pm PDT by
Today marked the kickoff of the third week of the Epic Games v. Apple trial, and this week is notable because Epic has finished with its witnesses and we're now transitioning to Apple witnesses, including notable Apple executives. Apple Fellow and former marketing chief Phil Schiller, who is in charge of the App Store, took the stand today. Schiller will testify for up to nine hours, and...
Read Full Article • 66 comments
apple wwdc app developer academy global stats

Apple Further Expands Developer Academy Program With First Detroit Applications Opening This Week

Wednesday May 12, 2021 5:39 am PDT by
Apple today released an update on the progress of the Apple Developer Academy program, ahead of applications for the new Detroit site opening this week. The Apple Developer Academy sets out to provide enrolled students with app development training and entrepreneurial skills. Apple offers two different training programs: 30-day foundation courses that cover specific topics, such as an...
Read Full Article • 0 comments
fortnite apple featured

Epic Games vs. Apple Trial Begins With Opening Remarks Underway

Monday May 3, 2021 9:05 am PDT by
The first day of the bench trial between Fortnite creator Epic Games and Apple is officially underway, with the companies delivering opening remarks before District Judge Yvonne Gonzalez Rogers in a Northern California courtroom. The saga dates back to August 2020, when Apple removed Fortnite from the App Store after Epic Games introduced a direct payment option in the app for its in-game...
Read Full Article • 264 comments