App Store Sales Saw Unprecedented Growth in 2020, Grossing Over $64 Billion

[MacRumors]

Apple's App Store saw unprecedented growth in 2020, grossing more than $64 billion in sales, according to a report by CNBC.

The figure is up from an estimated $50 billion in 2019 and $48.5 billion in 2018. This is a significant growth of 28 percent in 2020, compared to growth of just 3.1 percent in 2019.

Apple does not disclose how much revenue its App Store makes every year, but it has released data points every January since 2013 that include the total Apple has paid to developers since the start of the App Store in 2008. App Store revenue is reported as part of Apple's Services division, which reported sales of $53.7 billion at the end of Apple's 2020 fiscal year, which ended in September.

According to an Apple press release from earlier this week, the company has paid developers $200 billion since 2008. This is up $45 billion from the figure that was announced in January 2020. Equal to 70 percent of App Store sales, allowing for Apple's 30 percent cut of digital sales, the App Store grossed around $64 billion last year.

Prior to this information being available, the analytics firm Sensor Tower calculated that App Store spending reached around $72 billion in 2020 and the majority of spending across all app stores occurs on Apple's App Store, with about 70 percent of sales.

The App Store is a core area of growth for the company, and Apple recently announced that New Year's Day saw a new single-day spending record of over $540 million.

Article Link: App Store Sales Saw Unprecedented Growth in 2020, Grossing Over $64 Billion

 

[-DMN-]

That’ll happen when you’re forced to sit at home all day.

 

[iapplelove]

The App Store app has given me anxiety for years now. Just the new layouts alone drive me nuts. Thankfully now apps update on their own. No need to even open the app unless I must download something new, which again has not happened for a long long time.

 

[Red Oak]

CNBC is wrong. They assume Apple’s take is 30% for all App revenue. A meaningful and growing % is at 15%

So, the total gross generated by the App Stire is well over $70 billion

 

[yellow8]

Incredible numbers! Can't wait to see 2021!

 

[farewelwilliams]

this is what happens when Apple goes the extra mile in App Review, strict guidelines, and free developer resources.

these things cost extra money to do. Apple deserves their cut.

 

[contacos]

Always surprises me.

~tries to think of an app I bought~

 

[_Spinn_]

That's a crazy amount of money!

 

[FightTheFuture]

Incredible numbers! Can't wait to see 2021!

Will probably continue through 2021 seeing how social distancing will be around through year at the pace we’re vaccinating.

 

[LeeW]

Always surprises me.

~tries to think of an app I bought~

This is why it again shows that Apple is dependant on the general consumer that is spending the money, not the professional users. That is why the effort will go into services, subscriptions, apps and anything that increases revenue from that general consumer as they are more willing to spend.

 

[MauiPa]

The App Store app has given me anxiety for years now. Just the new layouts alone drive me nuts. Thankfully now apps update on their own. No need to even open the app unless I must download something new, which again has not happened for a long long time.

Have you tried Yoga? It really helps reduce stress and anxiety

 

[MauiPa]

This is why it again shows that Apple is dependant on the general consumer that is spending the money, not the professional users. That is why the effort will go into services, subscriptions, apps and anything that increases revenue from that general consumer as they are more willing to spend.

huh? there is nothing in this to indicate that. don't confuse gross revenue with net, most of the money goes to developers. Apple makes only a few professional packages. But lots of professionals buy apple products and run software (some of it from Apple, a lot from third parties). Seriously, if you were an application developer making professional applications that sell for hundreds or even thousands of dollars, wouldn't you have a web site of your own and manage your own customer relationships, dah, of course you would

 

[peneaux]

All tech companies made a lot of money since everybody had to stay at home. A poor waitress like me got screwed (not like I wanted). Tax-payer funds went to tech companies. What a way to screw the economy.

 

[vtrautia]

They are making lot of money but there is lack off innovation. There is still no try 30 days for free option and discover new apps is dismal.
But if there is no competition why innovate?

 

[iapplelove]

Have you tried Yoga? It really helps reduce stress and anxiety

Normally, I’m a pretty calm individual. Something about the App Store drives me crazy. Hate it.

 

[SWAON]

It's only due to Corona and the f*cking 30% for Apple.. Let's call it a news if thy end up 2021 with such figures..

 

[Apple_Robert]

It's only due to Corona and the f*cking 30% for Apple.. Let's call it a news if thy end up 2021 with such figures..

While the virus has probably played a part, you can't say it is the sole reason for the great sales. What about all the apps? Why about all the new people coming to iOS for the first time?

 

[Apple_Robert]

They are making lot of money but there is lack off innovation. There is still no try 30 days for free option and discover new apps is dismal.
But if there is no competition why innovate?

Developers have the option to allow free trial with their apps.

 

[Cosmosent]

Unless / Until Apple releases per-Qtr, per-Category Revenue Numbers for at-least the TOP FIVE Apps Stores around the world, these 1st-order Estimates are meaningless !

Most of the gain in CY2020 was very-likely in Game Apps.

So, the title really should say" "The App Store saw a HUGE SURGE in Game Apps in CY2020".

End of story.

BTW, why is Apple the ONLY company that has access to the per-Qtr, per-Category Revenue Numbers ?

Shouldn't third-party App Devs & AAPL Shareholders ALSO have access to it as well ?

Hopefully, that (soon) becomes a Reality under the New Admin here in the States !

If Tim Cook wants to maintain Apple's Monopoly as the Primary Mobile App Gatekeeper here in the States, they will need to open-up the Books (for ALL to see) !

BTW, NOT Rocket Science, the Today tab in the iOS App Store should tell anyone what Apple believes, that it's currently ALL-about Game Apps in the App Store !

Nothing else would explain the barrage of Game App & Apple Arcade promos every single day !

Without Official Numbers, it's ALL just Smoke & Mirrors ...

 

[Bawstun]

Normally, I’m a pretty calm individual. Something about the App Store drives me crazy. Hate it.

It’s their horribly confusing user-interface. They couldn’t make a more unintuitive app if they tried. Actually, Apple Music may actually be worse, so I take that back. But their developers really suck as of late. Horrible design choices internally...

 

[iapplelove]

It’s their horribly confusing user-interface. They couldn’t make a more unintuitive app if they tried. Actually, Apple Music may actually be worse, so I take that back. But their developers really suck as of late. Horrible design choices internally...

It’s really bad.

 

[DelayedGratificationGene]

It's only due to Corona and the f*cking 30% for Apple.. Let's call it a news if thy end up 2021 with such figures..

Just think about all the new App Store people who are now hooked....the 30% helps pay for Apple security which is paramount and which u and everyone else enjoy and which keeps your peace of mind

 

[DeepIn2U]

Incredible numbers! Can't wait to see 2021!

Honestly I wish these good tidings would reflect in the stock price.

 

[I7guy]

Unless / Until Apple releases per-Qtr, per-Category Revenue Numbers for at-least the TOP FIVE Apps Stores around the world, these 1st-order Estimates are meaningless !

Most of the gain in CY2020 was very-likely in Game Apps.

So, the title really should say" "The App Store saw a HUGE SURGE in Game Apps in CY2020".

End of story.

BTW, why is Apple the ONLY company that has access to the per-Qtr, per-Category Revenue Numbers ?

Shouldn't third-party App Devs & AAPL Shareholders ALSO have access to it as well ?

Hopefully, that (soon) becomes a Reality under the New Admin here in the States !

If Tim Cook wants to maintain Apple's Monopoly as the Primary Mobile App Gatekeeper here in the States, they will need to open-up the Books (for ALL to see) !

BTW, NOT Rocket Science, the Today tab in the iOS App Store should tell anyone what Apple believes, that it's currently ALL-about Game Apps in the App Store !

Nothing else would explain the barrage of Game App & Apple Arcade promos every single day !

Without Official Numbers, it's ALL just Smoke & Mirrors ...

The government will not force any company to release business confidential information. There is way to force Apple to do it. Vote for the BOD that will make Apple do it, simple...don't even need to get the government involved.

And what monopoly are you referring to, last I looked Apple wasn't a monopoly in any sense of the word, except if you are saying they have a monopoly on iphones.

 

[Mr.PT]

The government will not force any company to release business confidential information. There is way to force Apple to do it. Vote for the BOD that will make Apple do it, simple...don't even need to get the government involved.

And what monopoly are you referring to, last I looked Apple wasn't a monopoly in any sense of the word, except if you are saying they have a monopoly on iphones.

I think it’s the kind of monopoly that forces customers to buy in their App store products produced by Apple or sanctioned by Apple, you know like you can only drink coca-cola at Macdonald’s or drink Starbucks coffee at a Starbucks cafe, or ... let’s put it simply: people can choose androids phones; Windows PC; or whatever...