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Apple says its App Store facilitated ‘half a trillion dollars’ in sales in 2019

Apple usually gets anywhere between 15 and 30 per cent cut on the sale of apps and in-app products.

By: Tech Desk | New Delhi | Published: June 16, 2020 9:39:31 am
Apple, Apple app store, Apple app store ecosystem, apple antitrust scrutiny, app store revenue 2019, app store developers First announced in 2008, the App Store now has over 2 million apps. (Image credit: Bloomberg)

Apple announced on Monday that its App Store facilitated an estimated $519 billion in billings and sales in 2019. The study, which was commissioned by independent economists at Analysis Group, is one of the first comprehensive studies that analyse the impact of the App Store.

The company said that Apple only receives commissions from the billings associated with digital goods and services, “more than 85% of the $519 billion total accrues solely to third-party developers and businesses of all sizes. The study estimates sales from Physical Goods and Services accounted for the largest share, at $413 billion. Within this category, M-commerce apps generated the vast majority of sales, and Retail was the largest at $268 billion. This category includes sales from online retail apps such as Target and Best Buy as well as virtual marketplaces such as Flipkart and Myntra but excludes grocery delivery services.

“In a challenging and unsettled time, the App Store provides enduring opportunities for entrepreneurship, health and well-being, education, and job creation, helping people adapt quickly to a changing world,” said Tim Cook, Apple’s CEO, in a statement.

Meanwhile, the billings from the Digital Goods and Services section reached $61 billion in 2019. This includes music and video streaming services, fitness, education, e-books, audiobooks, news, magazines and dating apps. The study notes that the games category was the largest within digital goods and service. In-app Advertising Sales, on the other hand, accounted for another $45 billion and 44 per cent of that figure (around $20 billion) was from advertising in games.

First announced in 2008, the App Store now has over 2 million apps. According to Apple, the App Store is visited by half a billion people every week across 175 countries. Apple usually gets anywhere between 15 and 30 per cent cut on the sale of apps and in-app products.

Apple, Apple app store, Apple app store ecosystem, apple antitrust scrutiny, app store revenue 2019, app store developers Image credit: Apple

The announcement comes just a week before Apple holds its first-ever digital-only WWDC developer conference, where it will reveal the latest versions of operating systems that power most of its devices including iPhones, iPads, Macs, and Apple Watches.

Apple and other tech companies including Google and Amazon have been under the close watch of regulators for quite some time. Apple, for instance, has been accused of running an anti-competitive app marketplace. The Department of Justice and the Federal Trade Commission is monitoring closely whether companies like Apple, Google, or Amazon use their App Store to stifle competition.

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