App Store billings and sales hit a whopping 643 billion last year
App Store billings and sales hit a whopping 643 billion last year

Based on an independent study by the App Store, the iOS App Storefront generated $ 643 billion in revenue and bills last year, 24% more than the $ 519 billion the App Store made in 2019 AppleInsider’s study, titled “A Global Perspective on the Apple App Store Ecosystem,” shows that iOS app developers not only expanded their businesses in 2020, but also expanded their customer base.

Small developers continue to dominate the app store

It also turns out that the number of small developers on the App Store has increased by 40% since 2015. The definition of a small developer is one with less than 1 million downloads and less than $ 1 million in revenue, and 90% of App Store developers fit that definition. And of those little developers, 25% have managed to grow their revenue by 25% per year over the past five years.

The report also shows that almost 80% of small developers have apps in app stores in different countries. On average, app store developers are paid by customers in more than 40 countries. In total, the App Store is available in more than 175 countries and regions, supports more than 40 different languages, 45 different currencies and over 200 different payment methods.

Apple CEO Tim Cook says: “Developers in the App Store prove every day that there is no more innovative, more resilient or more dynamic market in the world than the app economy.” Cook adds, “The apps we relied on during the pandemic have changed our lives in so many ways – from groceries delivered to our homes, to educational aids for parents and educators, to an imaginative and constant one The growing universe of games and the result are not just incredible apps for users: it’s jobs, opportunities, and immeasurable innovations that will drive global economies for years to come. “

We should point out that the App Store has also created conflicts between Apple and developers because of the company’s in-app payment system, where Apple restricts up to 30% of in-app transactions. And any developer who offers their own platform to compete with Apple and avoid the 30% Apple tax will remove their app from the App Store. This is what happened with Epic Games and its popular Fortnite title.

Last month, Epic and Apple completed a two-week trial, and we expect the judge to announce her decision sometime in the third quarter. Apple and the App Store have been labeled anti-competitive because Apple does not allow iOS and iPadOS users to install apps from other app stores outside the App Store. This is one area where there is a huge difference between iOS and Android, as Android users are allowed to download apps from third-party app stores.

The App Store has become the center of controversy because of the Apple tax

Apple’s in-payment platform got a thumbs up from the CEO of Snapchat mother Snap, Evan Spiegel. The executive said Snap was “happy” to pay Apple’s 30% cut, noting that Snapchat would not exist without Apple and the App Store. This is the minority opinion, but another developer has praised Apple’s app ecosystem.

Wake up! is an app that offers 1,500 exercises to keep users active, and its founder Andres Canella described Apple’s in-app payment system as “essential” for a small business. He says, “It has allowed us to expand globally without having to worry about calculating local taxes or currency conversions. And the usage is so transparent for our customers – we can go anywhere, China, France, whatever. We get all the benefits of selling around the world without ever having to think about what is priceless. “

Still for every Snapchat and wakeout! There’s a Fortnite, a Netflix or a Spotify that is publicly attacking the App Store and Apple is calling the setup a monopoly and anti-competitive.


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