Apple Introduces App Store Small Business Program | Financial Buzz

Apple Introduces App Store Small Business Program

Apple, Inc. (NASDAQ: AAPL) introduced a new developer program to push innovation and aid small businesses and independent developers propel their businesses toward the next generation of apps on the App Store.  The App Store Small Business Program will help majority of developers who sell digital goods and services on the store with reduced commission on paid apps and in-app purchases.  Developers may qualify and received a 15% commission reduction if they earn up to USD 1 Million in proceeds during the previous calendar year.  The App Store Small Business Program is anticipated to Launch on January 1st, 2021 as small and independent developers continue to push towards innovation and success during the global pandemic. 

“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.”

Comprehensive details will be released in December as the program’s participation criteria has been made available.  Existing developers who make up to USD 1 Million in 2020 for all of their apps, including developers new to the App Store may qualify for the program with reduced commission. If the participating developer will surpass USD 1 Million threshold, the standard commission rate will begin to apply for the remainder of the year.  If a developer falls below USD 1 Million, in a future calender year they may requalify for the 15% commission the year after.