Apple’s App Store tax will drop to 15% for most developers

There’s an old saying that goes: if you yell loud enough, change will happen. The same rings true for the internet, where we’ve seen many instances of public outcry bringing about change. Following the Apple/Fortnite debacle earlier this year (catch up on that here), Apple’s dropping its App Store cut to just 15% come January. 

Today, Apple announced that it will reduce its App Store commission fee from 30% down to 15%. As The Verge puts it, this is “… one of the most substantial changes to how iOS developers earn money in the history of the iPhone maker’s digital app marketplace, as part of a new program for small businesses.”

Building a better App Store

Through the newly announced ‘App Store Small Business Program’, developers who make less than $1 million in annual sales from their library of apps will get away with paying just 15% to Apple. This is down from the previous 30%, an amount that came into question when Epic Games, Fortnite’s publisher, came out against substantial App Store costs. These costs make up a percentage of all app revenue and in-app purchases.

“The company says the “vast majority” of iOS app developers should be able to access the program, but Apple declined to say what percentage of its more than 28 million registered app makers would qualify. Apple also declined to specify how much of its App Store revenue would be affected by the reduced commission,” The Verge details the changes from Apple’s perspective. 

The new changes will go into effect on 1 January 2021 and will hopefully bring smaller developers more relief. We’re biting our nails in anticipation of other app marketplaces to drop their commission fees (ahem… looking at you, Google).