Apple is making changes in its app store policies that will go into effect starting January 1st, 2021. Apple on Wednesday announced a reduction to its longstanding App Store commission rate. For the developers who earn less than $1 million in annual sales per year from all of their apps to qualify for a reduced App Store cut of 15 percent. Developers will be asked to apply for the program in the coming weeks soon.
With these new Policies iOS app makers that exceed the $1 million threshold point at any point in 2021, they will automatically be removed from the program and subject to the standard 30 percent cut. If a developer falls back below the $1 million thresholds in a future calendar year, Apple says they can re-qualify for the program and its reduced 15% commission rate.
“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.”
