Wired
According to reports, the latest analysis data shows that the total revenue of Apple’s App Store in 2020 will exceed $64 billion, an increase of 28% from 2019.
According to data, the App Store’s revenue in 2018 was about 48.5 billion U.S. dollars, and its revenue in 2019 was about 50 billion U.S. dollars, and it reached 64 billion U.S. dollars in 2020. This shows that during the COVID-19 pandemic, because many people work from home, they spend more time and money on apps and games, which drives strong sales growth in the app store.
Today, the App Store business has become an important growth area for Apple. The performance of this department is included in Apple’s service department. In the 2020 fiscal year ending at the end of September, sales of Apple’s service division were $53.7 billion.
While the App Store has created huge profits for Apple, it has also become a fuse for Apple to be criticized by the outside world. They believe that Apple’s power is too great, and the 30% commission charged by the App Store is also too high. Recently, Apple adjusted its fee structure to only take 15% from companies whose App Store revenue is less than $1 million.
Last year, a subcommittee of the US Congress found that Apple had a monopoly on the distribution of iPhone applications. The committee said that this has brought super high profits to Apple. In addition, game developer Epic Games also sued Apple for monopoly.
Apple did not disclose the annual revenue of its App Store. On the contrary, since 2013, Apple has released some relevant data in January every year, including the total amount that Apple has paid to developers since the App Store was launched in 2008. Through these figures, you can roughly calculate how much revenue the App Store generates based on the amount Apple pays to developers in any given year.
A press release released by Apple on Wednesday showed that since 2008, Apple has paid developers US$200 billion, an increase of US$45 billion from the figure announced in January 2020. If this is equivalent to 70% of App Store sales, the App Store’s total revenue last year was approximately $64 billion.
The App Store’s digital sales score becomes 30%, but there are some exceptions, and Apple’s figures are very rough, which means that Apple’s App Store’s total sales may be higher. Application analysis company Sensor Tower predicts that App Store sales in 2020 may reach 72.3 billion US dollars.
Starting this year, Apple will charge 15% commissions instead of 30% to small developers whose annual income is less than $1 million on the App Store. But analysts say that apps are a “winner takes all” business. Sensor Tower said in 2019 that the top 1% of app publishers created 93% of the App Store and Google Play Store revenue.
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