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Apple says the App Store facilitated US$1.1 trillion in billings and sales last year

By Kenny Yeo - on 1 Jun 2023, 9:34am

Apple says the App Store facilitated US$1.1 trillion in billings and sales last year

(Image source: Apple)

A study conducted by the Analysis Group and funded by Apple revealed that the App Store helped contribute a whopping US$1.1 trillion in developer billings and sales last year.

These "billings and sales" consists of digital good and services sold through and consumed in iOS, physical goods and services (think merchandise), and in-app advertising.

But perhaps more crucially, the Analysis Group found that a total of US$910 billion out of that US$1.1 trillion amount can be attributed to physical goods and services and hence accrued directly to developers with no commission paid to Apple.

Apple's CEO, Tim Cook, said:

We’ve never been more hopeful about — or more inspired by — the incredible community of developers around the world. As this report shows, the App Store is a vibrant, innovative marketplace where opportunity thrives, and we’re as committed as ever to investing in developers’ success and the app economy’s future.

The report also said that small developers are outpacing larger developers in terms of revenue growth, by about 71% between 2022 and 2022.

Apple is clearly keen to point out that they are neither the sole or key beneficiary of the App Store, and that developers have more to gain from it than them.

That's because the App Store's monopoly could soon be broken. Word on the street is that, because of EU regulations, iOS 17 could allow customers in Europe to sideload apps – that is to obtain apps outside the App Store.

And in the US, largely because of the case of Epic Games against Apple, the court ruled that Apple must let developers use alternative payment systems.

Apple has long rallied against the changes, arguing that sideloading apps and allowing third-party payment systems could open users to security and privacy risks such as malware and scams.

Source: Apple

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