Apple Cuts App Store Commission in Half for Small Developers

Apple will now charge a 15% commission for developers making up to $1 million in revenue instead of the normal 30% rate.
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Apple  (AAPL) - Get Report announced Wednesday that it is cutting the fees charged to developers who sell software and services on the App Store by 50% in a move that will take effect in January 2021. 

The company will charge a 15% commission for "small" developers who produce up to $1 million in annual revenue, down from the previous fee of 30% it charged all developers. 

Apple said that the move is designed to to "accelerate innovation and help small businesses and independent developers propel their business forward with the next generation" of apps on its platform.

"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 Apple CEO Tim Cook. 

Comprehensive details surrounding the company's App Store policy changes will be released early next month, but Apple says that developers surpassing the $1 million threshold will see the regular rate applied for the remainder of the year after that point. 

If a developer falls below the $1 million threshold in a future calendar year, they can re-qualify for the 15% commission rate the year after. 

"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," Cook said. 

Apple shares were falling 0.4% to $118.90 in morning trading Wednesday. 

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