Apple Drops App Store Fees to 15% for All Developers Making Under $1 Million From App Store - MacRumorsOpen MenuShow RoundupsShow Forums menuVisit ForumsOpen Sidebar
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

Apple Creator Studio iWork suite

Apple Pulls Keynote, Pages and Numbers From App Store [Update: Back]

Thursday October 22, 2026 11:01 am PDT by
Apple has temporarily removed Keynote, Pages, and Numbers from the App Store, just after releasing an update that added iPhone Duo support and a new Intelligent Assistant. It is not clear if the apps were removed intentionally, or if it is a bug. Apple has not said when the apps will be reinstated, but if it was in error, they should return soon. Update: The Mac versions are back without...
iPhone Duo Apps feature

Apple Reveals More Than 50 Apps That Will Be Updated for iPhone Duo

Thursday October 22, 2026 6:04 am PDT by
Apple today highlighted more than 50 third-party App Store apps that are or will soon be fully optimized for the iPhone Duo and its various layouts and poses. You can hold the iPhone Duo and set it down in a number of ways, such as partially folded like a book, placed down on a surface, or standing on its edges: With the Netflix app, for example, Apple said iPhone Duo users can scroll...
Apple Says Over 100000 Apps Optimized for iPhone Duo But These Are Still Missing Feature 1

Apple Says More Than 100,000 Apps Optimized for iPhone Duo, Here's What's Still Missing

Friday November 6, 2026 9:18 am PST by
Apple today announced that more than 100,000 apps have been optimized for the iPhone Duo, released two weeks ago. We confirmed that this figure refers to apps built with the iOS 27.1 SDK or later, meaning these apps fill the full width of the iPhone Duo's inner and outer displays and have vertical controls in the status bar. A statement from Susan Prescott, Apple's Vice President of...

Top Rated Comments

78 months ago
EPIC!!!!

Or well, not for EPIC. LoL.
Score: 110 Votes (Like | Disagree)
Davehaslanded Avatar
78 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
78 months ago
This is huge, and is targeted at exactly the size of devs that can use it most.
Score: 65 Votes (Like | Disagree)
78 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
78 months ago
That is freaking amazing!
Score: 48 Votes (Like | Disagree)
LeeW Avatar
78 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
Early Apple Black Friday Deals on Apple Watch, MacBook Air, and More
Early Apple Black Friday Deals on Apple Watch, MacBook Air, and More
10 hours ago
'Backglow' Lets You Customize New MacBook Pro's Glowing Apple Logo
'Backglow' Lets You Customize New MacBook Pro's Glowing Apple Logo
10 hours ago
Top Stories: Apple Product Launches, iOS 27.3 Beta, and More
Top Stories: Apple Product Launches, iOS 27.3 Beta, and More
17 hours ago
More Fun iPhone Duo Apps: 30 New Picks to Try
More Fun iPhone Duo Apps: 30 New Picks to Try
1 day ago
Hands-On With Apple's New OLED Touchscreen MacBook Pro
Hands-On With Apple's New OLED Touchscreen MacBook Pro
1 day ago
Apple Store With All-New Design Opening Soon in Southern California
Apple Store With All-New Design Opening Soon in Southern California
1 day ago
Control the Glowing Apple Logo on Your New MacBook Pro
Control the Glowing Apple Logo on Your New MacBook Pro
1 day ago
Apple Shares New 'Apple Card: Apply and Use in Minutes' Ad
Apple Shares New 'Apple Card: Apply and Use in Minutes' Ad
2 days ago
Apple Says More Than 100,000 Apps Optimized for iPhone Duo, Here's What's Still Missing
Apple Says More Than 100,000 Apps Optimized for iPhone Duo, Here's What's Still Missing
2 days ago
Early Black Friday Deals Kickoff With Steep Discounts on Apple Watch Ultras and More
Early Black Friday Deals Kickoff With Steep Discounts on Apple Watch Ultras and More
2 days ago
The MacRumors Show: iOS 27.3 Looks Like a Huge Update
The MacRumors Show: iOS 27.3 Looks Like a Huge Update
2 days ago
Best Buy's Black Friday Event Begins With Sitewide Savings on Apple, TVs, More
Best Buy's Black Friday Event Begins With Sitewide Savings on Apple, TVs, More
2 days ago
Apple Releasing Yet Another Two New Products Next Week
Apple Releasing Yet Another Two New Products Next Week
2 days ago
MacBook Air Drops to Lowest Price in Months With Amazon's $250 Discount
MacBook Air Drops to Lowest Price in Months With Amazon's $250 Discount
2 days ago
Apple Rumored to Drop the iPhone's Action Button Next Year
Apple Rumored to Drop the iPhone's Action Button Next Year
2 days ago
Apple's Extended Return Policy Now in Effect for 2026 Holiday Season
Apple's Extended Return Policy Now in Effect for 2026 Holiday Season
2 days ago
Apple Music Classical Updated With New Icon and Refreshed Design
Apple Music Classical Updated With New Icon and Refreshed Design
2 days ago
OLED iPad Mini, M6 iMac, and New MacBook Pros Available From Today
OLED iPad Mini, M6 iMac, and New MacBook Pros Available From Today
2 days ago
Apple Surveys iPhone Duo Buyers About Crease and Camera
Apple Surveys iPhone Duo Buyers About Crease and Camera
2 days ago
Apple's First Touchscreen Mac is Now Arriving to Customers
Apple's First Touchscreen Mac is Now Arriving to Customers
2 days ago
Claude Gets Personal Finance Feature With Bank Account Linking
Claude Gets Personal Finance Feature With Bank Account Linking
2 days ago
Apple Arcade Adds Crossy Road Rush and NBA 2K27
Apple Arcade Adds Crossy Road Rush and NBA 2K27
2 days ago
Apple's New HomeView Smart Home Hub: Here's How Much RAM It Has
Apple's New HomeView Smart Home Hub: Here's How Much RAM It Has
2 days ago
iPad Mini vs. iPad Air Buyer's Guide: Now Just $50 Apart
iPad Mini vs. iPad Air Buyer's Guide: Now Just $50 Apart
2 days ago
First iOS 27.3 and macOS Golden Gate 27.3 Public Betas Now Available
First iOS 27.3 and macOS Golden Gate 27.3 Public Betas Now Available
3 days ago
Apple Announces a New Mac Sales Record
Apple Announces a New Mac Sales Record
3 days ago
Paid $200 for Logic Pro? Apple Says You Won't Get This New Feature
Paid $200 for Logic Pro? Apple Says You Won't Get This New Feature
3 days ago
Instagram's Edits Video Editor is Now Available on Mac
Instagram's Edits Video Editor is Now Available on Mac
3 days ago
Prevent Siri and Search From Accessing Specific iPhone Apps
Prevent Siri and Search From Accessing Specific iPhone Apps
3 days ago
Best Early Black Friday Deals on iPhone 18 Pro and iPhone Duo
Best Early Black Friday Deals on iPhone 18 Pro and iPhone Duo
3 days ago