Well, partner, as we gear up for the Worldwide Developers Roundup next month, Apple’s throwin’ some mighty big numbers out there about its U.S. App Store's gold rush. The company’s claimin’ the App Store ecosystem has wrangled in $406 billion in developer bills and sales this here year of 2024 — a figure that’s darn near triple the $142 billion it rustled up back in 2019.
Commission-Free Trail
Apple’s keen to point out that when it comes to the billings and sales on this here App Store, a whopping 90% of ‘em didn’t pay a lick of commission to the Cupertino cowboys.
The Study of the App Store Frontier
These fresh figures come from a study commissioned by Apple and conducted by Professor Andrey Fradkin from the Questrom School of Business at Boston University and economist Dr. Jessica Burley from the Analysis Group. Now, the Analysis Group ain’t new to Apple; they’ve been ridin’ together for some time, painting the App Store as a friendly place for developers lookin’ to strike it rich.
These studies have been hollerin’ that only a small portion of Apple’s developer posse pony up any commissions, and many of those folks get a special deal where their slice is cut from 30% to 15%.
Yet, them findings haven’t kept the antitrust lawmen from comin’. Apple had to throw open the corral gates to allow some competition into the App Store territory here in the U.S.
The Epic Showdown
Last month, Judge Yvonne Gonzalez Rogers declared that Apple violated the court’s direction from the Epic Games saga, where it needed to clean up its act regarding payments. Due to that judgment, Apple has to let developers add links to options outside the App Store, where Apple can’t wet its beak.
Apple’s appealin’ that decision, sure enough.
The Developer’s Gripe
Years of bickerin' over these App Store cuts have led to some bad blood between Apple and the iOS developers, who reckon their creations have been part and parcel of the iPhone’s triumph. Many of these developers reckon Apple ought to show ‘em a bit more appreciation rather than just seein’ 'em as cash cows.
Apple, on t’other hand, believes the App Store is the golden goose that’s helped developers succeed, making it a cinch for folks to find and pay for their services.
A Marketplace Fixin’ for Success
In Apple’s latest report, they note that earnings for U.S.-based app creators have more than doubled in the past five years. Small business developers, partner, saw a 76% rise from 2021 to 2024. Not much of a surprise, since Apple’s Small Business Program went live in 2020, offerin’ lower commissions for those who make under a million dollars a year.
Apple’s remindin’ developers of the wide open spaces they can reach, 175 countries and regions deep, while keepin’ outlaws from robbin’ them blind with billions in blocked fraudulent transactions. The investments in tools like HealthKit, Metal, Core ML, MapKit, and SwiftUI ain’t just for show either — there’s a quarter million APIs for developers to harness.
The Untapped Riches
Apple’s shiny new report also showcases the riches developers are reapin’ from the App Store in areas where no commission is due.
Take last year, for instance: the App Store ecosystem corralled $277 billion from physical goods and services, $75 billion from in-app ads, and $53 billion from digital merchandise and services. They also call out that spendin’ on physical goods more than tripled since 2019, while cost on digital wares and in-app adverts more than doubled. General shoppin’ and grocery deliverin’ have boomed fourfold.
Ahead of the big ol’ WWDC, Apple’s braggin’ that the App Store blocked $2 billion in scammy transactions last year and fetched $9 billion over the past five years. Yeehaw!