UPDATED 16:48 EDT / JANUARY 10 2022


Apple says developers have generated $260B in revenue through the App Store

Apple Inc. today shared new data about the growth of the App Store, detailing that developers have generated total revenue of more than $260 billion through the marketplace since its launch in 2008.

According to CNBC, the iPhone maker previously stated that developers’ total App Store revenues amounted to more than $200 billion at the end of 2020. This suggests that app makers generated $60 billion in sales during 2021.

Apple’s newly released data indicates that the App Store is growing at a rapid pace. The approximately $60 billion that developers grossed during 2021 represents a significant increase over the estimated $45 billion in sales the App Store is believed to have processed a year earlier.

Apple takes a commission of up to 30% from App Store purchases, including both app sales and in-app purchases. The company lowered the commission to 15% for most developers at the start of 2021 by launching an initiative called the App Store Small Business Program. The initiative makes all software developers with less than $1 million in annual net sales on the marketplace eligible for the lower fees.

Alongside the high-level data about App Store sales, Apple today also detailed a recent growth milestone. The company said App Store users “spent more than ever before between Christmas Eve and New Year’s Eve.” Apple didn’t disclose absolute numbers but stated that the record spending represents “double-digit growth” from the same time a year ago. 

The App Store provides access to services from both third-party developers and Apple itself. The iPhone maker in recent years has made significant investments in enhancing its lineup of services.

Apple in 2021 overhauled its Apple Books service by adding new features such as content recommendations. The company also detailed today that its Apple Arcade mobile game library received its biggest expansion yet in 2021 and now features more than 200 apps. 

The App Store is one of the most important components of Apple’s services business, which is in turn is a key part of its revenue growth strategy. The iPhone maker’s services business recorded a 27% year-over-year increase in sales last quarter that propelled its revenue to $18.28 billion.

In October, Apple disclosed that users have purchased more than 745 million paid subscriptions across its various services and platforms. That’s up from about 565 million subscriptions 12 months earlier and approximately 150 million five years earlier. 

Photo: Unsplash

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