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Apple Update: Increased Earnings for Small Developers

This month has been relatively quiet on the Apple news front – apart from those shiny new M1 Macs. We just wanted to share a couple of new developments around App Store Connect.

Increased Earnings for Small Developers

Apple currently takes a 30% cut of all earnings on the App Store from developers, the only exception being subscriptions which is 15% after the first year. Come January, developers who earn less than $1 million the previous year after Apple’s cut will be entitled to take part in the App Store Small Business Program.

The App Store Small Business Program allows developers who sell their app’s via Apple’s App Store to register for a reduction in commission. This is much welcome news to all the small developers who will see an increase of 20% to their App Store earnings.

The finer details about the program are not currently known but Apple is due to announce more information about it early this month. However, due to the way the program is setup, apps earning just over the $1 million threshold will be more likely to reduce the price of their apps later next year to ensure they retain the discount the following year.

This provides great benefits for independent developers to get the most out of the App Store and will most likely make many more businesses viable in the future with the extra revenue.

You can find out more directly from Apple: https://www.apple.com/newsroom/2020/11/apple-announces-app-store-small-business-program/

Christmas Shut Down

Every year, Apple gives their team of app reviewers some time off at Christmas so prevents new app or app update submissions to App Store Connect during that time. This year, the scheduled shut down runs from the 23rd to the 27th December so make sure your app updates are submitted well in advance!