Apple will lower the fees it charges for software developers from 30% to 15% if the developer made less than $1 million in the previous year from In-App-Purchases (IAP) and Paid Apps.
Apple today announced the introduction of the new App Store Small Business Program.
Effective January 1, 2021, all developers earning less than $1 million from the App Store will pay 15 percent in commission to Apple, down from the usual 30 percent.
This is great news for small business owners and independent developers.
Apple says, Developers can have their eligibility for the Small Business App Store reassessed on an annual basis.
As of November 2020, there are 1.8 million apps on the (Apple) App Store, reaching more than 1.5 billion Apple users in 175 countries worldwide.
Last year, the App Store facilitated $519 billion in global trade, with more than 85 per cent of that total coming from third-party developers alone.
Apple only orders less than 15 per cent of apps that sell digital goods and services either through in-app purchases or through paid application downloads.
Apple’s App Store fees have increasingly come under scrutiny as legislators and regulators have overturned Apple’s dominance over iOS.
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
Tim Cook, Apple CEO