Reduces from 30% to 15% for small developers.
Apple this week announced the App Store Small Business Program, a fancy term for a somewhat simple idea. Starting January 1, 2021 companies that earn less than $1 million USD annually will only have to pay a 15% cut on their earnings from app purchases and in-app purchases as opposed to the current standard of 30%.
The move encompasses all apps collectively from an individual developer and works on a rolling basis. So if you hit the million dollar mark on June 30, 2021 then the annual earnings before then will stay at 15% and anything after will fall into the 30% margin. This remains in place for the remainder of the year and then resets the following January 1.
“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 announcement is sure to come as a surprise and welcome revelation to all of the indie devs who will potentially have a lot more money to work with since it basically injects upwards of $150,000 back into the company’s pockets for upcoming earnings. Meanwhile the creators most likely to be able to shoulder the current share structure will continue shouldering that rate.
Apple has promised more details before the end of the year.
Source: Apple Newsroom
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