Today, Apple announced a reduction in App Store commissions that will substantially benefit a large part of the developer community. Starting January 1, 2021, developers who earn up to $1 million per year from their apps will have the commission paid to Apple cut in half, reducing it from 30% to 15%. Apple CEO Tim Cook said of the new App Store Small Business Program in an Apple press release:
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.
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.
Such a great decision, and one that a lot of people have been wanting for quite some time. The $1m a year limit is certainly going to disappoint some people, since it will cut out a lot of developers/companies. But I don’t think Apple are wrong to at least focus on the small businesses first. I’m sure a lot smarter people will argue the case for or against the cap, but right now I’m just looking forward to applying for this myself.