Small businesses are the backbone of our global economy and the beating heart of innovation and opportunity in communities around the world. If a developer falls back below the $1 million threshold in a future calendar year, Apple says they can re-qualify for the program and its reduced commission rate.Īpple CEO Tim Cook described the move as a way to support small businesses, which he describes in a statement as “the backbone of the global economy and the beating heart of innovation”: For those app makers that exceed the $1 million threshold at any point in 2021, they will automatically be removed from the program and subject to the standard 30 percent cut. New developers can also qualify right away. The company says it will look at developer proceeds for the year of 2020 to determine eligibility starting in January. Apple did not elaborate on why it’s choosing not to automatically enroll developers into the program, but it’s possible requiring that developers enroll may reduce the potential for fraud or other abuses that could arise if Apple simply auto-enrolled everyone below the threshold.Īpple did spell out some of the program’s rules today. Developers will be asked to apply for the program, and Apple says it will be releasing more information about that process and other eligibility requirements and deadlines in December.

The new small business program goes into effect starting January 1st, 2021.

According to analytics company Sensor Tower, an estimated 98 percent of developers would be eligible for the 15 percent cut, but those developers generated just 5 percent of the App Store’s total revenue last year. The App Store, which generated an estimated $50 billion in revenue in 2019 according to CNBC, is one of Apple’s most pivotal businesses beyond the iPhone and represents a pillar of the digital services strategy CEO Tim Cook has touted as the future of the company’s business. Apple will let developers who earn less than $1 million keep 15 percent more revenue

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