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

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

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.

app store 15 percent feature
The 15 percent commission rate applies to paid app purchases, in-app purchases, and subscription fees, with the lowered rate benefitting most developers on the ‌App Store‌.

"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."

All developers who earned under $1 million in 2020 are able to qualify for the program and the reduced 15 percent commission rate. New developers who join the ‌App Store‌ and create apps in 2021 will also qualify. Going forward, developers who earn up to $1 million in the prior calendar year will be able to participate.

Developers who earn over $1 million will not be eligible, with the $1 million total calculated using post commission earnings that take into account total earnings after Apple's standard 30 percent cut. Developers earning more than the cutoff will continue to pay the standard 30 percent commission rate.

If a developer who participates exceeds $1 million in earnings, commissions will go back up to the 30 percent rate as well. For example, a developer who joins the program in 2021 and exceeds $1 million in earnings mid-year will need to pay out 30 percent commission going forward for the rest of the year. This will also apply in 2022, but if after that revenue falls below the $1 million threshold, the developer will be eligible for the program again in 2023.

As for subscriptions, developers who are eligible for the program will pay a 15 percent commission on subscriptions, even during the first year. Apple already has mixed ‌App Store‌ fees for subscriptions. During the first year a person subscribes, the standard commission rate is 30 percent, but it drops to 15 percent after that. That fee structure remains in place, but Small Business Program participants will pay 15 percent for all subscribers.

According to Apple, the reduced ‌App Store‌ fees are being implemented to help small business owners maintain their businesses and accelerate innovation during uncertain times. The fee drop is being implemented as developers try to work through economic challenges and more and more business are pivoting to digital as people continue to work and learn from home.

The fee changes will be a relief to many developers who have been unhappy with Apple's ‌App Store‌ fees. Apple has faced scrutiny from U.S. antitrust regulators in the United States, and investigations conducted by those regulators have surfaced complaints from developers who believe Apple's fees are too high.

Today's fee cut won't benefit some of the developers that have been the most vocal about Apple's commission rates, such as Epic Games, but it will relieve some of the pressure on the small business owners that need the most help.

There are more than 28 million developers from 227 regions who offer apps through the ‌App Store‌, and 1.8 million apps available worldwide. Apple says that the program will be available to the 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.

Popular Stories

iPhone Duo Slack

Apple Announces iPhone Duo Apps Can Now Be Submitted to App Store

Monday October 5, 2026 7:15 pm PDT by
Apple today announced that apps optimized for the iPhone Duo can now be submitted for App Store approval, ahead of the foldable device launching on Friday, October 23. While existing App Store apps will automatically run on the iPhone Duo, only apps built with the iOS 27.1 SDK or later can dynamically resize to fill the entire space of the inner display, whereas unoptimized apps will have...
Liquid Glass App Store Feature

New App Store Rules Target AI Deepfakes and Nudify Apps

Friday October 16, 2026 3:21 pm PDT by
Apple today expanded its App Store moderation rules to cover AI-generated nonconsensual intimate imagery. Sexually explicit content was already banned, but now Apple says app developers must proactively prevent and remove AI-generated deepfakes from their platforms. Apple warns that apps with offending content could be removed from the App Store if developers fail to act. The updated 1.2...
iOS App Store General Feature Clorange

Apple's App Store Chief Explains Its Push for Premium Games

Tuesday October 20, 2026 8:58 pm PDT by
More premium games are launching on the App Store this year than last, Apple's App Store Worldwide head Carson Oliver told Polygon, including more franchises coming from PC and consoles. Oliver said: We've seen incredible growth of games coming to the App Store, in general, with more premium games releasing on the App Store this year than last. While many of those are indies, we're also...

Top Rated Comments

77 months ago
EPIC!!!!

Or well, not for EPIC. LoL.
Score: 110 Votes (Like | Disagree)
Davehaslanded Avatar
77 months ago
Now let’s see if Epic drop their legal battle, considering they claim they were only doing it for the ‘little people’, and not themselves. I doubt it.
Score: 89 Votes (Like | Disagree)
PickUrPoison Avatar
77 months ago
This is huge, and is targeted at exactly the size of devs that can use it most.
Score: 65 Votes (Like | Disagree)
77 months ago
This is great. I’m a dev that doesn’t earn even close to that limit so very nice indeed.
Imagine getting near the end of the year and sitting at 990k income. Surely it would be better to pull the app and lose a bit to get the next year at 15%?
Wouldn’t it make sense to make the first 1m 15% and 30% for everything earned over 1m?
Score: 49 Votes (Like | Disagree)
berrymetal Avatar
77 months ago
That is freaking amazing!
Score: 48 Votes (Like | Disagree)
LeeW Avatar
77 months ago
Let's be honest here, Apple is positioning this to fend off the various actions and criticism against them, doing it in a way that it will cost them less. But, having said that, it's a big deal for the smaller developer, so it's a win. But they are not doing it by choice, its a forced action.
Score: 46 Votes (Like | Disagree)
Latest Stories
Apple Will Label Apps 'Made for iPhone Duo' in App Store
Apple Will Label Apps 'Made for iPhone Duo' in App Store
2 hours ago
Amazon Takes $49 Off iPad With Prices Starting at $399.99
Amazon Takes $49 Off iPad With Prices Starting at $399.99
2 hours ago
F1 on Apple TV Now Available in Dolby Atmos
F1 on Apple TV Now Available in Dolby Atmos
3 hours ago
Apple Reveals More Than 50 Apps That Will Be Updated for iPhone Duo
Apple Reveals More Than 50 Apps That Will Be Updated for iPhone Duo
3 hours ago
Apple Blocks Certificates That Could Help Attackers Fake Websites
Apple Blocks Certificates That Could Help Attackers Fake Websites
5 hours ago
Giant iPhone Duo Installations Spotted at Apple Fifth Avenue
Giant iPhone Duo Installations Spotted at Apple Fifth Avenue
5 hours ago
iPhone Duo 2 Prototypes Include Under-Display Face ID
iPhone Duo 2 Prototypes Include Under-Display Face ID
6 hours ago
Tesla App Gains iPad and iPhone Duo Support
Tesla App Gains iPad and iPhone Duo Support
10 hours ago
Apple Reportedly Boosts iPhone Duo Orders by 44%
Apple Reportedly Boosts iPhone Duo Orders by 44%
10 hours ago
Fortnite Returning to Australian App Store After Court Ruling
Fortnite Returning to Australian App Store After Court Ruling
10 hours ago
Apple Ordered to Open iPhone to Rival App Stores in Australia
Apple Ordered to Open iPhone to Rival App Stores in Australia
11 hours ago
Apple Suppliers Face Hurdles Cutting Circuit Board Emissions
Apple Suppliers Face Hurdles Cutting Circuit Board Emissions
11 hours ago
Things Updated for iPhone Duo With Adaptive Layout
Things Updated for iPhone Duo With Adaptive Layout
11 hours ago
Simplicity and Siri AI Are HomeView's Killer Features, Apple Says
Simplicity and Siri AI Are HomeView's Killer Features, Apple Says
12 hours ago
iPhone Duo Reviewers Really Miss Face ID
iPhone Duo Reviewers Really Miss Face ID
17 hours ago
Does the iPhone Duo Run Hot? Here's What Reviews Found
Does the iPhone Duo Run Hot? Here's What Reviews Found
18 hours ago
Apple Music's New Look is Now Live on Apple's Website
Apple Music's New Look is Now Live on Apple's Website
19 hours ago
Anthropic Launches Claude Duet, a Proactive AI Agent
Anthropic Launches Claude Duet, a Proactive AI Agent
19 hours ago
What 32,000 Folds Did to the iPhone Duo's Hinge
What 32,000 Folds Did to the iPhone Duo's Hinge
20 hours ago
iPhone Duo's Hidden FaceTime Camera Takes 'Trash' Photos
iPhone Duo's Hidden FaceTime Camera Takes 'Trash' Photos
22 hours ago
iPhone Duo Has 'Edge Light' Feature That Debuted on Macs Last Year
iPhone Duo Has 'Edge Light' Feature That Debuted on Macs Last Year
22 hours ago
Apple Support App Updated for iPhone Duo's Larger Display
Apple Support App Updated for iPhone Duo's Larger Display
22 hours ago
Amazon Sweetens the Deal on Entry-Level 16-Inch MacBook Pro With $570 Off
Amazon Sweetens the Deal on Entry-Level 16-Inch MacBook Pro With $570 Off
23 hours ago
iPhone Duo Tips Over on MagSafe Stands When Unfolded
iPhone Duo Tips Over on MagSafe Stands When Unfolded
23 hours ago
Apple Music's New Look Officially Announced
Apple Music's New Look Officially Announced
1 day ago
iPhone Duo Supports Apple Pencil Starting With iOS 27.2
iPhone Duo Supports Apple Pencil Starting With iOS 27.2
1 day ago
iPhone Duo Accessories Roundup: Cases and Screen Protectors From OtterBox, ZAGG, and More
iPhone Duo Accessories Roundup: Cases and Screen Protectors From OtterBox, ZAGG, and More
1 day ago
Apple Stores Will Have 'Limited' Availability of iPhone Duo for Walk-In Customers
Apple Stores Will Have 'Limited' Availability of iPhone Duo for Walk-In Customers
1 day ago
iPhone Duo Reviews Explain Why Device is Both 'Fun' and 'Frustrating'
iPhone Duo Reviews Explain Why Device is Both 'Fun' and 'Frustrating'
1 day ago
Apple Says 'Reachability' Feature Coming to iPhone Duo Later This Year
Apple Says 'Reachability' Feature Coming to iPhone Duo Later This Year
1 day ago