App Store Developers Have Earned $1.1 Trillion In Total Billings & Sales, Receive 90% Of The Cut
June 2, 2023Apple’s payment system has helped App Store developers generate $1.1 trillion in total billings and sales in the App Store ecosystem in 2022. More than 90% of said revenue went directly to developers and without Cupertino taking a cut.
The company says that the App Store is experiencing strong growth, with 29% increase in billings and sales compared to the previous year. Surprisingly, smaller developers managed to outpace larger ones, increasing their revenue by 71% between 2020 and 2022.
According to a new analysis from the Progressive Policy Institute, it found that the iOS app economy now supports more than 4.8 million jobs across the U.S. and Europe. This is approximately 2.4 million in each region.
Economists from Analysis Group estimate that last year alone, App Store developers generated $910 billion in total billings and sale of physical goods and services, $109 billion from in-app advertising, and $104 billion for digital 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.”
Apple says that since 2019, U.S. developers’ billings and sales have increased by more than 80%. In Europe, developers’ billings and sales since 2019 saw an above average increase of 116%. Due to easing COVID-19 restrictions, app categories like travel and ride-hailing saw demand rebound with the former increasing by 84% and the latter by 45% in 2022 alone.
Safety is of paramount importance to Apple. Due to the stringent app vetting process, the App Store blocked more than $2 billion in fraudulent transactions and rejected 1.7 million app submissions for failing to meet privacy, security and quality standards.
Read more about Apple’s data findings here.
