Apple to lower App Store fees for smaller developers

Apple to lower App Store fees for smaller developers”

Apple is launching a new program that will cut App Store commissions to 15% per year, for developers and businesses paid less than $1 million a year by Apple.

All developers who earned under $1 million in 2020 are able to qualify for the program and the reduced 15 percent commission rate.

"Small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities around the world", Apple CEO Tim Cook said in a prepared statement.

Developers can have their eligibility for the App Store Small Business Program reassessed on an annual basis going forward, Apple says. Under the new guidelines of the "App Store Small Business Program", as it's called, developers earning up to $1 million per year will only have to pay a 15% commission on in-app purchases, rather than the standard 30% commission.

Under the terms of this new program, existing developers who made up to $1 million in 2020 on the App Store, and any new developers, can qualify for the program and the reduced commission. "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".

The new program will launch on January 1, 2021, and will be based on the business's revenues in the previous calendar year - meaning 2020.

A developer that is not eligible for the App Store Small Business Program will be eligible the calendar year following any calendar year that they earn less than $1 million. However, developers will need to apply to the program and more requirements may be announced when comprehensive details are revealed in early December.

More news: Could Apple Be Launching A Foldable iPhone Soon?

Apple said it will continue charging a 30 percent commission rate for apps selling digital goods and services and making more than $1 million in proceeds.

Apple has been facing growing pressure to reduce the percentage it takes from every app sale and in-app content purchases.

Apple previewed the App Store changes to a handful of developers, who commented in a separate Apple press release.

Samantha John, co-founder of iPad coding app Hopscotch, says that the new program will allow her team to "take some risk" in offering the app for free.

The reduction of App Store commissions comes at a critical time for app developers and Apple.

"This is a big opportunity for the indie gaming spirit to become truly mobile", said indie developer Phillip Stollenmayer, known for Apple Design Award victor Song of Bloom.

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