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 (opens in new tab) 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.
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.
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".
You can read the full statement at the Apple Newsroom (opens in new tab) website.
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Joe Wituschek is a Contributor at iMore. With over ten years in the technology industry, one of them being at Apple, Joe now covers the company for the website. In addition to covering breaking news, Joe also writes editorials and reviews for a range of products. He fell in love with Apple products when he got an iPod nano for Christmas almost twenty years ago. Despite being considered a "heavy" user, he has always preferred the consumer-focused products like the MacBook Air, iPad mini, and iPhone 13 mini. He will fight to the death to keep a mini iPhone in the lineup. In his free time, Joe enjoys video games, movies, photography, running, and basically everything outdoors.
Um, you might want to fix that headline. $500 million is NOT "half a trillion". Then again, maybe you should proofread this stuff before you publish.
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