Apple lowers its cut of App Store revenues for some developers

Enlarge / Apple's App Store. (credit: Silas Stein/picture alliance via Getty Images)

In one of the biggest changes to the App Store model ever, Apple today announced that the majority of third-party developers releasing apps and games on the company's App Store will see a reduction in Apple's cut of revenues from 30% to 15%. The company calls it the App Store Small Business Program, and it aims to improve the company's standing in public perception and antitrust battles while minimally impacting its own bottom line.

The program is opt-in, and any developer whose combined revenue across all their apps was less than $1 million in the previous year (or any developers new to the App Store) can apply and be accepted. The revenue measure at play here includes not just app purchases, but in-app purchase (IAP) and subscriptions revenue.

If during the course of the year the developer surpasses the $1 million threshold, the 30% rate will kick back into effect for the remainder of that year. If the developer falls below the threshold again, they'll receive the 15% rate once more the following year.

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