Apple have just announced the launch of their App Store Small Business Program which will take effect January 1st, 2021. Once active, developers who made less than $1M on the AppStore in the previous year, or new App Store developers, will pay a 15% commission instead of the regular 30%.
Details of the program from the announcement:
- Existing developers who made up to $1 million in 2020 for all of their apps, as well as developers new to the App Store, can qualify for the program and the reduced commission.
- If a participating developer surpasses the $1 million threshold, the standard commission rate will apply for the remainder of the year.
- If a developer’s business falls below the $1 million threshold in a future calendar year, they can requalify for the 15 percent commission the year after.
More details are expected in early December. Tim Cook, Apple CEO, had the following to say on the change:
“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.”
Of course, this also fails to mention the ongoing legal trouble with Epic Games, the anti-trust investigations in both the EU as well as the United States. Regardless to reasoning however, this is a win for small developers, who could potentially see a doubling of their revenue next year! You can learn more about the announcement in the video below.