Apple’s App Store Rakes In $519 Billion
June 17, 2020An independent study conducted by economists at Analysis Group, found that Apple’s App Store billings for 2019 amounted to $519 billion. About $413 billion of that total revenue was for sales of physical goods and services.
Apparently, sales from e-commerce apps, the ones that digitally represent brick-and-mortar stores, accounted for the vast majority of sales made on the platform, at $268 billion. Examples of said stores are Target, Best Buy and other virtual marketplaces that sell physical goods, but exclude grocery deliveries.
Travel apps, including Expedia and United, accounted for $57 billion. Ride-hailing apps, including Uber and Lyft, comprised $40 billion in sales, and food delivery apps, including DoorDash and Grubhub, made up $31 billion.
Apps that offer digital goods and services such as music and video streaming, ebooks and audiobooks, news and magazines, dating services raked in a total of $61 billion. Apart from this, In-app advertising sales did well too, accounting for $45 billion, 44% of which was derived from games.
Surprisingly, Apple only gets to keep a tiny commission of this total revenue. More than 85% of the $519 billion in sales is channeled to third-party developers and businesses who create or own the apps in question. That said, these figures prove that the App Store is seen as a trusted platform on which, one can successfully conduct online businesses.
