Become a MacRumors Supporter for $25/year with no ads, private forums, and more!

MacRumors

macrumors bot
Original poster
Apr 12, 2001
52,108
13,729


Apple today announced that its App Store ecosystem supported $519 billion in billings and sales worldwide in 2019, based on an independent study conducted by Analysis Group, an economic consulting firm in the United States.

appstore.jpg

Since the App Store launched in 2008, developers have earned over $155 billion from app and in-app purchases, with a quarter of those earnings occurring in 2019. However, the App Store also facilitates the sale of a wide variety of physical goods and services, ranging from Uber and Lyft rides to Postmates and DoorDash deliveries, which the study found accounted for $413 billion of the last year's total.

Apple_App-Store-infographic-stats_06152020_inline.jpg.large_2x.jpg

Of this $413 billion, some categories include:
  • $268 billion from retail apps such as Target, Best Buy, and Etsy
  • $57 billion from travel apps such as Expedia and United
  • $40 billion from ride-hailing apps such as Uber and Lyft
  • $31 billion from food delivery apps such as DoorDash and Grubhub
Apple CEO Tim Cook:
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.
Apple said the App Store now has nearly two million apps and is accessed by half a billion people each week across 175 countries.

Article Link: Apple Says App Store Ecosystem Supported Over $500B in Commerce Worldwide in 2019
 
Last edited:

Naaaaak

macrumors 6502a
Mar 26, 2010
637
2,068
> The App Store is a place where innovators and dreamers can bring their ideas to life

Except if they compete with Apple. Or try to offer free speech. Or need to escape Apple's narrow sandbox. Or have a novel business model that can't work with 30% overhead. Etc.
 
Comment

DeepIn2U

macrumors G3
May 30, 2002
8,467
3,155
Toronto, Ontario, Canada
> The App Store is a place where innovators and dreamers can bring their ideas to life

Except if they compete with Apple. Or try to offer free speech. Or need to escape Apple's narrow sandbox. Or have a novel business model that can't work with 30% overhead. Etc.

offer free speech in an App Store what does that even mean? Please elaborate.
So developers that make good money, are now going to bite the hand that feeds them; pretty much?! I get changing default iOS apps to third party but asking for no fees when distribution, support for over 12 different mode iPhones to make money off of, guaranteed per sale income (no refunds) and ability to upload test keys for apps? Not agreeing on that ever.

every business should be able to work with some overhead. If you’re coding completely 24/7 no other income then it’s your responsibility to deal with rent, food, internet and other bills not Apple.
 
Comment

farewelwilliams

macrumors 601
Jun 18, 2014
4,439
16,906
App Store is great for developers. Any developers complaining about the lack of "alternative app stores" clearly doesn't understand the user experience side of having 1 app store. They also don't understand that having 1 app store allows Apple to concentrate all of their resources to making it better for the developer.
 
Comment

auralux

macrumors demi-god
Mar 7, 2017
1,751
2,118
Impressive and good news for Apple. This is the future for Apple and it knows it -- services, recurring revenue, and software. It's just far more profitable and sustainable over time.
Should leave loads of money for hardware QC and stable macOS releases then right? 😂
 
Comment

pers0n

macrumors regular
Mar 5, 2014
193
106
Should leave loads of money for hardware QC and stable macOS releases then right? 😂
No Tim Cook needs that 50 room mansion w 15 bathrooms to have the AC at 50F 24/7, along with the multiple pools cleaned daily with underwater 90 tv and dolphins. 😝
 
  • Like
Reactions: OriginalMacRat
Comment

satchmo

macrumors 68040
Aug 6, 2008
3,349
3,344
Canada
I'm curious how many small developers are making big money through native apps. It seems like it's either big budget developers and large corporations that dominate the app landscape.

Just getting noticed in the App store seems like a challenge. Is the trend moving away from native and going with progressive web apps?
 
Comment

Abazigal

Contributor
Jul 18, 2011
14,231
13,076
Singapore
> The App Store is a place where innovators and dreamers can bring their ideas to life

Except if they compete with Apple. Or try to offer free speech. Or need to escape Apple's narrow sandbox. Or have a novel business model that can't work with 30% overhead. Etc.

It’s software. There are virtually no variable costs here, so any amount of overhead could theoretically work.
 
Comment

Cosmosent

macrumors 68000
Apr 20, 2016
1,744
1,890
La Jolla, CA
OK, but I have one MAJOR complaint:

Cook & Co. has a Complete & Total Stranglehold on "App Discovery" in their "curated" iOS App Store !

UN-Discovered Gem Apps sit Idle, while apps from BIG public companies that appear to be near-copy-cats of other similar apps (flooded) in the App Store, get recommended as App of the Day ... see today's Photoshop app !

Strike that, it's actually "two" MAJOR complaints:

The other, AAPL clearly "plays Favorites" !
 
Comment

lunarworks

macrumors 68000
Jun 17, 2003
1,972
5,208
Toronto, Canada
> The App Store is a place where innovators and dreamers can bring their ideas to life

Except if they compete with Apple. Or try to offer free speech. Or need to escape Apple's narrow sandbox. Or have a novel business model that can't work with 30% overhead. Etc.
Avoiding the other subjects because that's skating pretty close to moderation, have you ever heard of something called "markup"? That's how retail works. That box of software or a video game on the shelf at Best Buy? The store takes a slice of that too. So does the distributor who brings it to the store. The same applies to online sales, but the store and distributor are one and the same.
 
  • Like
Reactions: stevec618
Comment

falainber

macrumors 68020
Mar 16, 2016
2,457
2,902
Wild West
What sort of BS data is that? Who really cares? Windows and Linux facilitate transactions amounting to trillions (or the next order 'lions', whatever the name for it is) of dollars. Somehow they never brag about it (and why would they?). Also, this number should be way higher for Android by virtue of Android having way more users.
 
Last edited:
  • Disagree
Reactions: rbgaynor
Comment

rbgaynor

macrumors member
Nov 18, 2010
93
37
Southern California
"Also, this number should be way higher for Android by virtue of Android having way more users."

It's well known that the iOS app store revenue greatly exceeds that of the Android app store (almost 2X more).
 
  • Disagree
Reactions: mi7chy
Comment

falainber

macrumors 68020
Mar 16, 2016
2,457
2,902
Wild West
"Also, this number should be way higher for Android by virtue of Android having way more users."

It's well known that the iOS app store revenue greatly exceeds that of the Android app store (almost 2X more).
That would be relevant if Apple included only transactions generated directly by the App Store. They did not. They included things like Uber payments that have nothing to do with App Store.
 
Comment

ninjadex

macrumors 6502
Jun 1, 2004
328
215
It’s software. There are virtually no variable costs here, so any amount of overhead could theoretically work.

No variable costs with software r&d, support, marketing, etc.? Simply put, you are misinformed.
 
Comment

DeepIn2U

macrumors G3
May 30, 2002
8,467
3,155
Toronto, Ontario, Canada

Although it's a developer application/submission, it's most likely the content being submitted within that caused the official request from the Chinese government to remove the app.

Unfortunately that seems like Apple's hands are tied due to government law's or tactics there. We know what's going on and has been in China for over two decades + now and it's alarming. Sad really.

I cannot imagine the amount of citizens that have gone missing, targeted by government therein. suddenly reversed and documented opinions that end up praising the government there.
 
Comment

Angrydad

macrumors newbie
Oct 4, 2017
12
5
Rocky Mountains


Apple today announced that its App Store ecosystem supported $519 billion in billings and sales worldwide in 2019, based on an independent study conducted by Analysis Group, an economic consulting firm in the United States.

appstore.jpg

Since the App Store launched in 2008, developers have earned over $155 billion from app and in-app purchases, with a quarter of those earnings occurring in 2019. However, the App Store also facilitates the sale of a wide variety of physical goods and services, ranging from Uber and Lyft rides to Postmates and DoorDash deliveries, which the study found accounted for $413 billion of the last year's total.

Apple_App-Store-infographic-stats_06152020_inline.jpg.large_2x.jpg

Of this $413 billion, some categories include:

  • $268 billion from retail apps such as Target, Best Buy, and Etsy
  • $57 billion from travel apps such as Expedia and United
  • $40 billion from ride-hailing apps such as Uber and Lyft
  • $31 billion from food delivery apps such as DoorDash and Grubhub
Apple CEO Tim Cook:Apple said the App Store now has nearly two million apps and is accessed by half a billion people each week across 175 countries.

Article Link: Apple Says App Store Ecosystem Supported Over $500B in Commerce Worldwide in 2019
If Apple could be a monopoly they would do it in a heartbeat.
 
Comment

rbgaynor

macrumors member
Nov 18, 2010
93
37
Southern California
That would be relevant if Apple included only transactions generated directly by the App Store. They did not. They included things like Uber payments that have nothing to do with App Store.

Even independent analysts, with their own estimates of the app market (and no desire to favor one over the other) have long agreed with the nearly 2X disparity.

 
  • Disagree
Reactions: mi7chy
Comment

hanske68

macrumors member
Jan 21, 2020
52
47
So Apple earned some 155 Billion on commission?
How about spending some of that on proper documentation and support for the developers?

IMO, 10% commission would be decent. 15% if free developer account, superb documentation and decent support.
 
Comment
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.