Apple Begins Lowering App Store Commission to 15% for Eligible Developers

Apple recently introduced a new Small Business Program that reduces the App Store's commission rate to 15% for developers earning up to $1 million per calendar year in net revenue from the sale of apps and in-app purchases. For developers exceeding the $1 million threshold, Apple's standard 30% commission rate still applies.

app store blue banner
Earlier this week, Apple began emailing eligible developers about their acceptance into the program, noting that the reduced 15% commission rate would go into effect by January 1, 2021. And as it turns out, Apple isn't waiting long to flip the switch, as some developers are already starting to see the 15% rate applied to their earnings.

A few of the developers already seeing the reduced rate include David Hodge, maker of the third-party Tesla vehicle app Nikola for the iPhone, and Jacob Gorban, a developer of the photo editing app ImageFramer for the Mac.


Apple announced the Small Business Program last month amid increasing scrutiny over its App Store practices, including an antitrust lawsuit from Fortnite maker Epic Games, which is ineligible for the reduced commission since it exceeds the $1 million earnings threshold. Apple said the program will benefit the "vast majority" of App Store developers.

Apple's website has a Small Business Program page where developers can initiate the enrollment process and learn more details.

Top Rated Comments

WiiDSmoker Avatar
23 months ago
But I thought Facebook said Apple is bad for small business!?!?
Score: 18 Votes (Like | Disagree)
GizmoDVD Avatar
23 months ago
People will still complain it’s not $0. Fools
Score: 15 Votes (Like | Disagree)
chucker23n1 Avatar
23 months ago

Isn't $1 million rather high, don't get me wrong, good for those which earn less but $1 million is quite the salary, that is, if you're the sole dev for an app.
For a sole dev, yes, that’s fairly high.

It depends on regional salaries — you can probably sustain about a dozen people in east Europe, or about three or four in Silicon Valley.


Score: 6 Votes (Like | Disagree)
peneaux Avatar
23 months ago
Should we thank Epic?
Score: 5 Votes (Like | Disagree)
farewelwilliams Avatar
23 months ago

How about the indie musicians getting $7 from a $9.99 iTunes album?
iTunes takes 30%...so...that's up to the indie musicians.
Score: 4 Votes (Like | Disagree)
ian87w Avatar
23 months ago
I wonder if Facebook also reduced their ads rates for small businesses, especially since their tracking is supposedly "less effective" now.
Score: 4 Votes (Like | Disagree)

Related Stories

iOS App Store General Feature Dock

Dutch Regulator Says Apple's Plan for Third-Party In-App Payments is Insufficient, Fines Apple 5 Million Euros

Monday January 24, 2022 6:33 am PST by
The Dutch Authority for Consumers and Markets (ACM) has ruled that Apple's plan to allow App Store dating apps to use third-party payment methods for in-app purchases does not sufficiently meet the requirements of a previous ruling. As a result, the ACM has hit Apple with an initial 5 million euro fine as a consequence, and fines will continue to be assessed at 5 million euros per week up to a...
iOS App Store General Feature JoeBlue

Apple to Allow In-App Third-Party Payment Options for First Time in the Netherlands

Saturday January 15, 2022 12:39 am PST by
Apple has announced that it will allow third-party payment options for in-app purchases for dating apps in the Netherlands, in the first ever concession of its kind. In a message posted on its developer site late on Friday, Apple announced that it will comply with a Netherlands Authority for Consumers and Markets (ACM) ruling that compels the company to allow third-party payment services to...
iOS App Store General Feature JoeBlue

Apple to Collect 27% Commission on Third-Party App Payment Systems in the Netherlands

Friday February 4, 2022 3:16 am PST by
Apple says it will take 27% commission on purchases made in dating apps through third-party payment options in the Netherlands, in compliance with a Dutch regulatory ruling. In an update on its developer support site, Apple said it would collect 27% commission instead of its usual 30% on transactions made in dating apps that use alternative payment methods. Apple says the decreased...
wordle

Clones of Popular 'Wordle' Game Flooding App Store, Including One Charging $30 Per Year [Updated]

Tuesday January 11, 2022 1:39 pm PST by
If you're a regular internet user you've probably heard of popular web-based daily guessing game Wordle, created by Josh Wardle. The game, which is entirely free to play, was introduced last fall and has been spreading like wildfire. Wordle asks players to guess a five letter word by identifying which letters are in the word and are located in the right location. Players get six guesses per...
iOS App Store General Feature Dock

Indie Developer Dogged By Scammy Clone Apps Again Highlights the Holes in Apple's App Store Review Process

Monday February 21, 2022 9:29 am PST by
Apps that copy concepts and features from other apps are nothing new in the ‌App Store‌, but scammy like-for-like clones of genuine apps remain a perennial problem that Apple still hasn't resolved, as indie developer Kevin Archer recently discovered. Archer is responsible for 2Stable's Authenticator App, a feature-rich app that stores and generates secure two-factor authentication tokens...
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...
iOS App Store General Feature JoeBlue

App Store Now Supports Unlisted Apps Discoverable Only With a Direct Link

Friday January 28, 2022 11:27 am PST by
Apple recently announced that the App Store now supports unlisted apps discoverable only with a direct link, as outlined on its developer website. Developers with apps that aren't suited for public distribution can submit a request on Apple's website to distribute unlisted apps, which don't appear in any App Store categories, recommendations, charts, search results, or other listings....
General App Store South Korea Feature Feature

Apple's Proposal to Allow Third-Party Payment Methods in App Store 'Lacks Detail,' Says South Korean Regulatory Commission

Thursday February 3, 2022 2:36 am PST by
Apple's plans to allow developers to use third-party alternative payments methods within their apps in South Korea "lacks concrete detail," according to South Korea's Communications Commission (KCC). In August, South Korea passed a law that bans app store operators from requiring developers to use their in-app purchase systems. Last month, Apple submitted its compliance plans to the KCC that ...

Popular Stories

iphone 14 pro max vs 13 max 2

Camera Comparison: iPhone 14 Pro Max vs. iPhone 13 Pro Max

Thursday September 29, 2022 7:44 am PDT by
The iPhone 14 Pro and Pro Max introduce some major improvements in camera technology, adding a 48-megapixel lens and low-light improvements across all lenses with the new Photonic Engine. We've spent the last week working on an in-depth comparison that pits the new iPhone 14 Pro Max against the prior-generation iPhone 13 Pro Max to see just how much better the iPhone 14 Pro Max can be. Subscrib ...
tony blevins car

Apple Procurement VP Departs Company After Vulgar TikTok Comment

Thursday September 29, 2022 12:38 pm PDT by
Tony Blevins, Apple's vice president of procurement, is set to depart the company after he made a crude comment about his profession in a recent TikTok video, reports Bloomberg. Blevins was in a video by TikTok creator Daniel Mac, who was doing a series on the jobs of people he spotted with expensive cars. After seeing Blevins in an expensive Mercedes-Benz SLR McLaren, Mac asked Blevins what ...
Dark Sky App Featured

Dark Sky Removed From iOS App Store Ahead of Upcoming Shutdown

Wednesday September 28, 2022 4:27 pm PDT by
The Dark Sky weather app that's owned by Apple is no longer available for download in the U.S. App Store, suggesting that it has been removed ahead of schedule. Apple acquired Dark Sky back in March 2020 and has since incorporated elements of the app into the Weather app available on the iPhone (and soon, the iPad). Dark Sky remained available for purchase as a standalone weather app...
adaptive transparency airpods pro

iOS 16.1 Beta Brings Adaptive Transparency to Original AirPods Pro

Thursday September 29, 2022 1:08 pm PDT by
The third beta of iOS 16.1 that was released earlier this week expands the Adaptive Transparency feature introduced with the second-generation AirPods Pro to the original AirPods Pro. As noted on Reddit, first-generation AirPods Pro owners who also have the AirPods beta software will now see an "Adaptive Transparency" toggle in the AirPods section of the Settings app. The 5A304A beta...
tim cook malala

Tim Cook: Not Too Long From Now, You'll Wonder How You Led Your Life Without AR

Thursday September 29, 2022 7:26 am PDT by
Speaking at Università Degli Studi di Napoli Federico II in Naples, Italy, Apple CEO Tim Cook said that not too long from today, people will wonder how they led a life without augmented reality, stressing the "profound" impact it will have on the not so distant future. At the university, Cook was awarded an Honorary Degree in Innovation and International Management and also sat down for a...
iPhone 15 to Switch From Lightning to USB C in 2023 feature sans arrow

Kuo: iPhone 14 Pro Max Popularity Could Lead to More Differentiation Between iPhone 15 Pro and iPhone 15 Pro Max

Wednesday September 28, 2022 10:22 am PDT by
Apple has seen high demand for the 6.7-inch iPhone 14 Pro Max, which could lead the company to further differentiate the next-generation iPhone 15 Pro and Pro Max, according to Apple analyst Ming-Chi Kuo. Apple could add exclusive features to the iPhone 15 Pro Max in an effort to encourage more people to purchase the larger and more expensive device. Kuo last week said that Apple asked...
iOS 16 Wallpaper Spectrum Feature

Five Wallpaper Apps to Check Out for iOS 16's New Lock Screen Depth Effect

Thursday September 29, 2022 9:08 am PDT by
One of the biggest new features in iOS 16 is a completely redesigned iPhone Lock Screen. The new Lock Screen is entirely customizable, letting you change the colors and fonts, add widgets and new wallpapers, and more to make your iPhone uniquely yours. Of course, even before iOS 16, you could customize your Lock Screen with a wallpaper of your choice. iOS 16 takes the Lock Screen wallpaper...
apple watch ultra deuglify 1

Apple Watch Ultra User Mods Titanium Casing to 'Deuglify' Design

Tuesday September 27, 2022 8:05 am PDT by
An Apple Watch Ultra user has modified their new device's casing to add a brushed finish and remove the orange color of the Action Button in an effort to make it more visually appealing. The Apple Watch Ultra offers the first complete redesign of the Apple Watch since the product line's announcement in 2014, and while the design has been met with praise from many users, some have criticized...
mx mechanical keyboard logitech

Logitech Launches New 'Designed for Mac' Mice and Keyboards

Wednesday September 28, 2022 12:01 am PDT by
Logitech today announced the launch of several new mice and keyboards that have been developed for use with Apple's Macs, including Logitech's first mechanical keyboard that has been optimized for the Mac. The MX Mechanical Mini for Mac Keyboard has a keyboard layout designed for Macs, with tools to customize shortcuts with Logi Options+. The keyboard uses Tactile Quiet low-profile switches...
iphone 14 iphone 14 plus in hand feature

iPhone 14 Is Secretly Hiding a Beloved Mac Feature

Friday September 30, 2022 3:24 am PDT by
The iPhone 14 and iPhone 14 Pro models bring over a longstanding Mac feature, but the setting to enable it is off by default. The feature, which is actually a new accessibility option, allows the iPhone to play a startup chime like the Mac. When enabled, the sound comes alongside a new shutdown chime. The Mac has featured a startup chime since 1987's Macintosh II, and the iconic "bong"...