Apple CEO Tim Cook delivered a speech at the Apple Worldwide Developers Conference (WWDC) held at the San Jose Convention Center in San Jose, California on Monday, June 4, 2018.
Josh Edson | AFP | Getty Images
According to CNBC’s analysis, Apple’s App Store’s total revenue in 2020 will exceed $64 billion.
According to the same analysis, this figure is higher than 50 billion U.S. dollars in 201
According to CNBC’s analysis, App Store revenue increased by 28% in 2020, higher than 3.1% in 2019.
Apple’s App Store is the company’s core growth area. According to reports, this is part of Apple’s service division, which reported $53.7 billion in sales for the 2020 fiscal year ending in September.
The money Apple makes from its App Store has become the focus of controversy criticizing Apple, who believe that Apple has too much power. Apple charges a 30% fee for digital sales through its platform, with a few exceptions. Apple recently changed its fee structure, and now companies with less than $1 million in the App Store have only cut 15%.
The Congressional Subcommittee found in 2020 that Apple has a monopoly on the distribution of iPhone applications and said this has brought huge profits to Apple. Epic Games is filing a lawsuit against Apple on antitrust grounds. The company wants to avoid paying the iPhone 30% of its gaming revenue, which is called unfair. Apple denies that the App Store is a monopolist and is currently fighting Epic Games’ allegations in court.
Apple did not disclose the annual revenue of its App Store. Instead, since 2013, it has released data points in January that include the total amount Apple has paid developers since the App Store was founded in 2008.
Using these numbers, you can roughly estimate the revenue generated by the App Store based on what Apple pays to developers in any year. According to a press release on Wednesday, Apple has paid $200 billion to developers since 2008, an increase of $45 billion from the figure announced in January 2020. If this equals 70% of App Store sales, the total revenue of the App Store is approximately $64 billion per year.
There are some exceptions to Apple’s 30% reduction in digital sales, and Apple’s figures are rough, which means that total sales in the Apple App Store may be higher. Application analysis company Sensor Tower estimates that App Store sales in 2020 will be 72.3 billion US dollars.
Apple said in 2016 that it would only pay 15% to subscribe to the app for the second year. Apple executive Eddy Cue sent an email to Amazon CEO Jeff Bezos in 2016, suggesting that Apple would sign a subscription through Amazon Prime. Charge 15% According to an email issued by the House Antitrust Subcommittee last year, the app can complete the transaction.
But as a hypothesis, 30% of Apple’s revenue is close to 15%. An analysis by RevenueCat, a company that produces software to help Apple developers bill subscriptions, found that only 16% of apps that can be used with it have a “take home” rate of more than 75%. The apps that make the most money on the App Store are usually games. These games are not based on subscriptions, but are monetized through in-app purchases. Apple pays 30%.
Starting this year, Apple will charge 15% (instead of 30%) to small developers with annual income of less than $1 million. But analysts believe that applications are the business with the most winners. According to the 2019 estimate of Sensor Tower, an app analytics company, the top 1% of app publishers generated 93% of their revenue in the App Store and Google Play Store.