Because it faces rising authorized stress in the US, Apple at present shared the outcomes of a commissioned examine that delves into the success of the App Retailer ecosystem and the cash that it is earned builders massive and small by means of digital and bodily purchases.
Ready by Professor Andrey Fradkin from Boston College Questrom College of Enterprise and economist Dr. Jessica Burley from Evaluation Group, the examine means that the U.S. App Retailer facilitated $406 billion in developer billings and gross sales in 2024, and for 90 p.c of these gross sales, builders paid no fee to Apple.
That determine incorporates each digital and bodily gross sales, and for the latter class, Apple has by no means collected a fee. $277 billion of the whole consists of gross sales of bodily items and companies, whereas $53 billion is from digital items and companies (a few of that are topic to Apple’s charges), and $75 billion is attributed to in-app promoting. Apple counts gross sales of bodily items, digital items, companies, and promoting made by means of its App Retailer apps.
“For greater than 15 years, the App Retailer has created unimaginable alternative for app builders, entrepreneurs, and companies of all sizes,” stated Tim Prepare dinner, Apple’s CEO. “That features the various U.S. builders who’re innovating, constructing their companies, and discovering distinctive success on the App Retailer. We’ll proceed to spend money on highly effective instruments, expertise, and sources to assist builders within the U.S. and around the globe take their apps to new heights and create transformative experiences for customers.”
The dimensions of the App Retailer ecosystem has tripled since 2019, when it was chargeable for $142 billion in billings and gross sales, and the examine signifies that earnings for U.S.-based builders have greater than doubled in the identical period of time. For small builders specifically (these incomes lower than $1 million yearly), earnings have elevated 76 p.c between 2021 and 2024. 9 of the highest 10 apps within the U.S App Retailer had been made by U.S. builders, and there have been 12.4 billion app downloads worldwide in 2024, a 36 p.c improve in comparison with 2019.
Spending on bodily items greater than tripled between 2021 and 2024, and spending on digital items and companies and in-app promoting greater than doubled. Basic retail spending and grocery supply drove a lot of the rise in spending on bodily items, and within the digital class, video games noticed the very best earnings.
The examine touts a number of App Retailer advantages for builders:
- App distribution and the flexibility to record apps on storefronts in 175 international locations and areas.
- Xcode and Swift for creating apps.
- TestFlight for testing apps.
- Seamless fee and commerce system for app monetization.
- App assessment course of that forestalls fraudulent transactions.
- App Retailer Join for monitoring app efficiency and engagement.
- Over 250,000 APIs and frameworks together with HealthKit and Steel.
- On-line and in-person applications for app improvement.
- Built-in {hardware} and software program expertise.
- App discovery and engagement.
And advantages for customers:
- Decrease malware and fraud as a result of App Retailer assessment course of.
- Privateness management with options like App Monitoring Transparency and Privateness Vitamin Labels.
- Buy administration and safety for apps and subscriptions.
- Instruments for households and youngsters, corresponding to Household Sharing and Ask to Purchase.
- Display Time for managing app and on-line exercise.
The examine that Apple commissioned comes as Apple is combating a serious U.S. App Retailer rule change that was carried out earlier this yr as a part of its ongoing authorized struggle with Epic Video games. Apple was ordered to permit builders so as to add hyperlinks and buttons of their apps that direct prospects to buy choices obtainable outdoors of the App Retailer, which supplies builders with a technique to promote digital items and companies to customers with out in-app purchases and with out paying Apple a charge. Apple doesn’t have management over how hyperlinks and buttons look, nor can it gather charges from these out-of-app purchases presently.
Apple has appealed the choice, however whereas the appeals course of performs out, the App Retailer rule change is in impact in the US. Apple makes use of commissioned research like this to share its place within the court docket of public opinion and with the court docket that may have the ultimate authorized say on how the App Retailer will run.
The complete examine is on the market by means of Apple’s Newsroom article.