Apple CEO Tim Cook spoke at the World Developer Conference (WWDC) at the San Jose Convention Center in San Jose, California on Monday, June 4, 2018.
Josh Edelson AFP | Getty Images
Apple’s App Store raised more than $ 64 billion in 2020, according to a CNBC analysis.
That’s compared to approximately $ 50 billion in 201
App Store revenue grew 28% in 2020 compared to 3.1% in 2019, according to a CNBC analysis.
Apple’s App Store is a major area of growth for the company. It is reported as part of Apple’s services division, which reported $ 53.7 billion in sales in Apple’s fiscal 2020, which ended in September.
The money Apple earns from its App Store has become a blaze for Apple critics who say they have too much power. Apple charges 30% for digital sales through its platform, with a few exceptions. Apple recently changed its fee structure and now takes only a 15% discount from companies that generate less than $ 1 million in the App Store.
A congressional subcommittee found in 2020 that Apple has monopoly power over the distribution of iPhone applications, which it says gives Apple big profits. Apple has been sued on antitrust grounds by Epic Games, which wants to avoid paying Apple 30% of sales of its iPhone games, which it calls unfair. Apple has denied that the App Store is a monopoly and is currently fighting Epic Games’ claims in court.
Apple does not disclose how much revenue the App Store earns annually. Instead, since 2013, it released data points in January that include the amount Apple has paid developers since the start of the App Store in 2008.
Using these numbers, it is possible to recover approximately how much revenue the App Store has generated based on how much Apple has paid developers in a given year. According to a press release Wednesday, Apple has paid developers $ 200 billion since 2008, up $ 45 billion from what was announced in January 2020. If that’s equal to 70 percent of the App Store’s sales, then the App Store has earned about $ 64 billion in the last year.
There are some exceptions to Apple’s 30% reduction in digital sales, and Apple’s numbers are rough, which means that Apple’s overall sales on the App Store are probably even higher. Sensor Tower, an application analysis firm, estimates that the App Store had sales in 2012 of $ 72.3 billion.
In 2016, Apple said apps for the second year of the subscription had to pay only 15%, and Apple CEO Eddy Cue emailed Amazon CEO Jeff Bezos in 2016, proposing that Apple charge a 15% fee for Subscriptions signed through the Amazon Prime app for the deal are said in an email published by the House Antitrust Parliament’s subcommittee last year.
But assuming 30% for Apple is closer to 15%. An analysis by RevenueCat, a company that makes software to help Apple developers charge for subscriptions, found that only 16 percent of the apps it runs manage a 75 percent “home” percentage. The apps that make the most money in the App Store are usually games that are not subscription-based, but provide revenue through in-app purchases that Apple charges 30%.
As of this year, Apple charges 15% instead of 30% to smaller developers who make less than $ 1 million a year on Apple platforms. Analysts say applications are the best business, analysts say. The top 1% of app publishers generate 93% of revenue in the App Store and Google Play Store, according to a 2019 forecast by Sensor Tower, an application analysis firm.