Apple-Funded Study Suggests App Store Ecosystem Facilitated $1.1 Trillion in Sales in 2022

[MacRumors]

The App Store was responsible for an estimated $1.1 trillion in developer billings and sales in 2022, according to an Apple-sponsored study conducted by economists from Analysis Group. Apple shared the results of the study today as part of an ongoing effort to highlight the benefits of the App Store and the successes of developers who use the Apple platform.

A total of $910 billion of the $1.1 trillion estimate comes from the sales of physical goods and services that happened outside of the App Store, while $109 billion was from in-app advertising, and $104 billion was from digital goods and services. The estimate includes sales from businesses of all sizes, large and small, and for the physical goods and services, Apple did not collect commission.

Apple charges a 15 to 30 percent fee for app purchases, in-app purchases, and in-app subscriptions through the App Store, but it does not collect a fee when customers do things like purchase groceries online or pay for an Uber ride using an Apple device. Note that in the study terms, "billings" is a reference to app purchases, in-app purchases, and subscriptions, while "sales" pertains to goods and services.

"We've never been more hopeful about -- or more inspired by -- the incredible community of developers around the world," said Tim Cook, Apple's CEO. "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."

There was a 29 percent increase in developer billings and sales year over year, with the travel and ride hailing services seeing the most notable growth. The App Store has seen steady growth over the last several years, going from $643 billion in 2020 to $868 billion in 2021, before crossing a trillion in 2022.

Analysis Group points out that direct app monetization is a "small fraction" of the commerce facilitated by the App Store, with developers able to monetize through ad-supported content, goods and services sold outside of the App Store, and physical goods and services.

The study suggests that beyond in-app purchases and subscriptions, the App Store provides a "trusted platform" for businesses to sell their products, and it points out the many policies that Apple has implemented to "foster user trust" and prevent fraudulent transactions.

In the 15 years since the App Store launched, developers have earned a total of $320 billion directly from the App Store. There are 123 times more apps available now compared to the end of 2008, with more than 370 billion app downloads since launch. Games make up the largest number of apps, followed by business and education apps.

This is the second study from Analysis Group that Apple has shared this month, with the prior study focusing on the App Store successes of small businesses. Today's study offers a wider look at the total App Store ecosystem. Analysis Group has been providing similar reports for Apple since 2020 as Apple fights against App Store regulations across multiple countries.

The two studies published in May come amid rumors that Apple plans to begin supporting sideloading in Europe following the launch of iOS 17. The Digital Markets Act requires Apple to allow European customers to obtain apps outside of the App Store and to use alternate payment methods, and Apple will need to allow sideloading by 2024. Apple has argued against sideloading because it skirts the protections offered by the App Store and will require a complicated system where Apple collects a reduced commission from developers.

Sideloading will reportedly only be available in Europe where it is mandated, but other countries are considering similar legislation, and Apple is undoubtedly hoping to discourage regulators from adopting similar laws. In the United States, for example, the Open App Markets Act and the American Innovation and Choice Online Act would allow developers to use non-Apple app stores and alternative payment systems. Studies like this that are widely publicized work to further Apple's narrative about the size of the App Store ecosystem and the potential consequences of dismantling its protections.

Analysis Group's full study can be accessed through the Apple Newsroom article. It goes into more depth on both App Store ecosystem earnings in 2022 and 15-year growth metrics.

Article Link: Apple-Funded Study Suggests App Store Ecosystem Facilitated $1.1 Trillion in Sales in 2022

 

[robbietop]

"Wellll, acctuaaalllllyyyyyyyyyy, according to some sources it is only $900 Billion gosh Apple is soooo biased with their own studies."

 

[klasma]

It’s not like people wouldn’t know how to spend their money if the app store didn’t exist.

 

[toobravetosave]

30% for other people’s hard work going strong!

 

[Apple Knowledge Navigator]

"We've never been more hopeful about -- or more inspired by -- the incredible community of developers around the world," said Tim Cook

Eh? I wonder what margin of that trillion dollars was DLC for shovelware children’s entertainment…

 

[East India Company]

Aaaand that is why Apple doesn’t want any sideloading or other app stores. Protecting the users my ass!

 

[Brandon42]

It’s not like people wouldn’t know how to spend their money if the app store didn’t exist.

It would take a much more in-depth study to figure out how much was truly facilitated by the App Store. If an App was harder to find and trust would you buy without an App instead? Sometimes yes sometimes no. You might make a sandwich instead if it was harder to order lunch safely through a delivery service App.

 

[BaldiMac]

30% for other people’s hard work going strong!

By these numbers, even if you don't include physical goods and services, Apple's take is closer to 10%. Pretty cheap for a retailer/platform provider.

 

[GermanSuplex]

So it wasn’t the end of the world when Apple implemented more privacy controls?

 

[klasma]

It would take a much more in-depth study to figure out how much was truly facilitated by the App Store. If an App was harder to find and trust would you buy without an App instead? Sometimes yes sometimes no. You might make a sandwich instead if it was harder to order lunch safely through a delivery service App.

My point is that the money saved would likely be spent elsewhere. So the implication that the app store is benefiting the economy to any significant degree seems tenuous to me. I’m not sure if studies of any depths could provide proof either way, due to the What Ifs involved.

 

[tubular]

30% for other people’s hard work going strong!

Yeah, because every developer should be developing their own dev kit on top of the OS they should also be developing.

 

[xander49x]

why try to fix something that is not broken. It will only lead to Apple getting blamed for some not to bright person downloading from a non apple eco system and blaming apple for things going wrong.

 

[mjmsmith]

"Ticketmaster ecosystem"

 

[MikeMo]

30% for other people’s hard work going strong!

Note that, according to the article, 90% of those transactions were commission-free. Also note that it takes hard work to create and support a worldwide ecosystem like that, and that many of those transactions were at 15%. So Apple’s take could be as low as $300 million. While not pocket change, I can easily imagine it would take a majority of that to create and maintain that infrastructure. Server farms are not cheap.

 

[BaldiMac]

Note that, according to the article, 90% of those transactions were commission-free. Also note that it takes hard work to create and support a worldwide ecosystem like that, and that many of those transactions were at 15%. So Apple’s take could be as low as $300 million. While not pocket change, I can easily imagine it would take a majority of that to create and maintain that infrastructure. Server farms are not cheap.

I agree with your point, but I don't know where your getting the $300 million from. For 2022, Apple's revenue would have been closer to $25 billion. (20-25% of $104 billion).

 

[4odomi]

I agree with your point, but I don't know where your getting the $300 million from. For 2022, Apple's revenue would have been closer to $25 billion. (20-25% of $104 billion).

Did you mis the part where he said 90% of the transaction were commission free?

 

[4odomi]

The App Store was responsible for an estimated $1.1 trillion in developer billings and sales in 2022, according to an Apple-sponsored study conducted by economists from Analysis Group. Apple shared the results of the study today as part of an ongoing effort to highlight the benefits of the App Store and the successes of developers who use the Apple platform.

A total of $910 billion of the $1.1 trillion estimate comes from the sales of physical goods and services that happened outside of the App Store, while $109 billion was from in-app advertising, and $104 billion was from digital goods and services. The estimate includes sales from businesses of all sizes, large and small, and for the physical goods and services, Apple did not collect commission.

Apple charges a 15 to 30 percent fee for app purchases, in-app purchases, and in-app subscriptions through the App Store, but it does not collect a fee when customers do things like purchase groceries online or pay for an Uber ride using an Apple device. Note that in the study terms, "billings" is a reference to app purchases, in-app purchases, and subscriptions, while "sales" pertains to goods and services.
There was a 29 percent increase in developer billings and sales year over year, with the travel and ride hailing services seeing the most notable growth. The App Store has seen steady growth over the last several years, going from $643 billion in 2020 to $868 billion in 2021, before crossing a trillion in 2022.

Analysis Group points out that direct app monetization is a "small fraction" of the commerce facilitated by the App Store, with developers able to monetize through ad-supported content, goods and services sold outside of the App Store, and physical goods and services.

The study suggests that beyond in-app purchases and subscriptions, the App Store provides a "trusted platform" for businesses to sell their products, and it points out the many policies that Apple has implemented to "foster user trust" and prevent fraudulent transactions.

In the 15 years since the App Store launched, developers have earned a total of $320 billion directly from the App Store. There are 123 times more apps available now compared to the end of 2008, with more than 370 billion app downloads since launch. Games make up the largest number of apps, followed by business and education apps.

This is the second study from Analysis Group that Apple has shared this month, with the prior study focusing on the App Store successes of small businesses. Today's study offers a wider look at the total App Store ecosystem. Analysis Group has been providing similar reports for Apple since 2020 as Apple fights against App Store regulations across multiple countries.

The two studies published in May come amid rumors that Apple plans to begin supporting sideloading in Europe following the launch of iOS 17. The Digital Markets Act requires Apple to allow European customers to obtain apps outside of the App Store and to use alternate payment methods, and Apple will need to allow sideloading by 2024. Apple has argued against sideloading because it skirts the protections offered by the App Store and will require a complicated system where Apple collects a reduced commission from developers.

Sideloading will reportedly only be available in Europe where it is mandated, but other countries are considering similar legislation, and Apple is undoubtedly hoping to discourage regulators from adopting similar laws. In the United States, for example, the Open App Markets Act and the American Innovation and Choice Online Act would allow developers to use non-Apple app stores and alternative payment systems. Studies like this that are widely publicized work to further Apple's narrative about the size of the App Store ecosystem and the potential consequences of dismantling its protections.

Analysis Group's full study can be accessed through the Apple Newsroom article. It goes into more depth on both App Store ecosystem earnings in 2022 and 15-year growth metrics.

Article Link: Apple-Funded Study Suggests App Store Ecosystem Facilitated $1.1 Trillion in Sales in 2022

Which goes tp prove, the 30% commission is a bit of a myth.
IMO all the developers, should be bending a knee to Tim Cook instead of falsely slagging off the APP store!
I for one will always use it, regardless of what happens

 

[BaldiMac]

Did you mis the part where he said 90% of the transaction were commission free?

No. The 10% that he referred to was the $104 billion for "digital goods and services" that would have a commission. The other 90% for physical sales and in-app ads would not.

 

[TracesOfArsenic]

why try to fix something that is not broken. It will only lead to Apple getting blamed for some not to bright person downloading from a non apple eco system and blaming apple for things going wrong.

IKR! Look at what a mess macOS has been all these decades! It's atrocious how Apple have let users run amok and install whatever they want. How irresponsible and reckless! Next thing you know they'll be telling to have 2 marijuanas a day for good health.

 

[SFjohn]

IKR! Look at what a mess macOS has been all these decades! It's atrocious how Apple have let users run amok and install whatever they want. How irresponsible and reckless! Next thing you know they'll be telling to have 2 marijuanas a day for good health.

Funny. My mom’s new Mac keeps stalling & crashing after a year. I tell her take it to the Apple Store. She does, and half her computer is full of garbage software. Apple removes it for her and now it runs perfectly. Perhaps she should stick to the Mac App Store.

 

[gund1234]

Aaaand that is why Apple doesn’t want any sideloading or other app stores. Protecting the users my ass!

people who want to side load apps can buy Android phones, there are options.
Please don't ruin for us who like to download apps from App Store.
once Apple allos side loading apps, iOS app store would be like MacOS App store, few crappy apps in there.
we are forced to take risks.

 

[randyhudson]

Study Suggests App Store Ecosystem Robbed Developers of $330 Billion​

​

FTFY​

 

[mrparker]

At least Apple is being honest that it's about money and not about privacy and security.

Finally some transparency.

 

[mrparker]

people who want to side load apps can buy Android phones, there are options.
Please don't ruin for us who like to download apps from App Store.
once Apple allos side loading apps, iOS app store would be like MacOS App store, few crappy apps in there.
we are forced to take risks.

It's more deep than that for most people (including myself) - a lot of people are in the ecosystem because their families are in it.

Personally, I think consumer rights & choice should take precedent over what a company wants their product to function like, specifically if it is designed that way for monetary reasons (like it is in this case).

Side note, definitely don't research Apple's stance on right to repair (& Greenpeace's rating of it) and Craig Federighi's position on iMessage back in 2013 - which is especially relevant today.

 

[BuddyTronic]

The App Store was responsible for an estimated $1.1 trillion in developer billings and sales in 2022, according to an Apple-sponsored study conducted by economists from Analysis Group. Apple shared the results of the study today as part of an ongoing effort to highlight the benefits of the App Store and the successes of developers who use the Apple platform.

A total of $910 billion of the $1.1 trillion estimate comes from the sales of physical goods and services that happened outside of the App Store, while $109 billion was from in-app advertising, and $104 billion was from digital goods and services. The estimate includes sales from businesses of all sizes, large and small, and for the physical goods and services, Apple did not collect commission.

Apple charges a 15 to 30 percent fee for app purchases, in-app purchases, and in-app subscriptions through the App Store, but it does not collect a fee when customers do things like purchase groceries online or pay for an Uber ride using an Apple device. Note that in the study terms, "billings" is a reference to app purchases, in-app purchases, and subscriptions, while "sales" pertains to goods and services.
There was a 29 percent increase in developer billings and sales year over year, with the travel and ride hailing services seeing the most notable growth. The App Store has seen steady growth over the last several years, going from $643 billion in 2020 to $868 billion in 2021, before crossing a trillion in 2022.

Analysis Group points out that direct app monetization is a "small fraction" of the commerce facilitated by the App Store, with developers able to monetize through ad-supported content, goods and services sold outside of the App Store, and physical goods and services.

The study suggests that beyond in-app purchases and subscriptions, the App Store provides a "trusted platform" for businesses to sell their products, and it points out the many policies that Apple has implemented to "foster user trust" and prevent fraudulent transactions.

In the 15 years since the App Store launched, developers have earned a total of $320 billion directly from the App Store. There are 123 times more apps available now compared to the end of 2008, with more than 370 billion app downloads since launch. Games make up the largest number of apps, followed by business and education apps.

This is the second study from Analysis Group that Apple has shared this month, with the prior study focusing on the App Store successes of small businesses. Today's study offers a wider look at the total App Store ecosystem. Analysis Group has been providing similar reports for Apple since 2020 as Apple fights against App Store regulations across multiple countries.

The two studies published in May come amid rumors that Apple plans to begin supporting sideloading in Europe following the launch of iOS 17. The Digital Markets Act requires Apple to allow European customers to obtain apps outside of the App Store and to use alternate payment methods, and Apple will need to allow sideloading by 2024. Apple has argued against sideloading because it skirts the protections offered by the App Store and will require a complicated system where Apple collects a reduced commission from developers.

Sideloading will reportedly only be available in Europe where it is mandated, but other countries are considering similar legislation, and Apple is undoubtedly hoping to discourage regulators from adopting similar laws. In the United States, for example, the Open App Markets Act and the American Innovation and Choice Online Act would allow developers to use non-Apple app stores and alternative payment systems. Studies like this that are widely publicized work to further Apple's narrative about the size of the App Store ecosystem and the potential consequences of dismantling its protections.

Analysis Group's full study can be accessed through the Apple Newsroom article. It goes into more depth on both App Store ecosystem earnings in 2022 and 15-year growth metrics.

Article Link: Apple-Funded Study Suggests App Store Ecosystem Facilitated $1.1 Trillion in Sales in 2022

What a powerhouse company!

Awesome. Trillion Dollars!