What you need to know
- Apple announced the App Store contributed to $500 billion in commerce in 2019.
- The company cited a report by economists at Analysis Group.
- 85% of the revenue is attributed to third-party developers and businesses.
In a blog post on its Newsroom website, Apple announced that the App Store contributed to over half a trillion dollars worth of commerce last year. The company came to the conclusion citing a report from Analysis Group.
"Apple today announced the App Store ecosystem supported $519 billion in billings and sales globally in 2019 alone. The new study, conducted by independent economists at Analysis Group, found that the highest value categories were mobile commerce (m-commerce) apps, digital goods and services apps, and in-app advertising. The results encapsulate the full sweep of the dynamic, competitive, and flourishing app economy, which has unleashed a torrent of innovation across 175 countries and revolutionized the way the world learns, works, and connects."
The study found that payment from Apple to its developers only accounts for about 15% of the revenue created by the App Store. Most of the commerce created by the platform is through the sale of physical goods and services from third-party developers.
"The study reveals that the direct payments made to developers from Apple are only a fraction of the vast total when sales from other sources, such as physical goods and services, are calculated. Because Apple only receives a commission from the billings associated with digital goods and services, more than 85 percent of the $519 billion total accrues solely to third-party developers and businesses of all sizes."
Tim Cook applauded the result, saying that "the App Store provides enduring opportunities for entrepreneurship, health and well-being, education, and job creation, helping people adapt quickly to a changing world".
"The App Store is a place where innovators and dreamers can bring their ideas to life, and users can find safe and trusted tools to make their lives better. In a challenging and unsettled time, the App Store provides enduring opportunities for entrepreneurship, health and well-being, education, and job creation, helping people adapt quickly to a changing world. We're committed to doing even more to support and nurture the global App Store community — from one-developer shops in nearly every country to businesses that employ thousands of workers — as it continues to foster innovation, create jobs, and propel economic growth for the future."
You can read the full statement at the Apple Newsroom website.
We may earn a commission for purchases using our links. Learn more.