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$ 519 billion – total sales through the App Store ecosystem in 2019 [Инфографика]

17.06.2020 0 Comments

$ 519 billion - total sales through the App Store ecosystem in 2019 [Инфографика]

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At the beginning of the year, Apple boasted that the total revenue of developers offering their applications in the App Store has exceeded $ 155 billion since its launch in 2008. Now, in a fresh study (.pdf) commissioned by Apple by an independent company, Analysis Group, among Other facts, it is indicated that only in 2019 payments and purchases of $ 519 billion passed through the entire ecosystem of the App Store. This amount includes both sales of physical products and revenue from services, as well as sales of digital products.

Once again, for the sake of clarity, so that there is no confusion between the above $ 155 billion that application developers earned over the 12 years of the store’s existence and $ 519 billion for 2019. In the first case, we are talking about payments to application developers, in the second – these are general payments in the App Store for 2019, which include not only sales of applications, but also many other categories of products, including subscriptions and physical goods.

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Apple emphasizes that of this impressive amount of sales of digital products and services, of which the company charges a commission of 30% (or 15% in case of longer subscriptions), make up only $ 61 billion. This includes mobile games, which accounted for the lion's share of revenue as well as in-app purchases, subscriptions and sales of paid apps.

And the Cupertino giant pays attention to this amount for a reason. The fact is that Apple has been repeatedly criticized for an unfair income distribution scheme of 70/30 (70% to the developer, 30% to Apple). Actually, last year Spotify complained about Apple to the European Commission, and the regulator became interested in this matter – if, as a result, the owners of the App Store are found guilty, they can be fined for a lot of money (up to $ 26.6 billion), and also demand to change the business model, which could potentially hit the service business growing at a record pace.

In addition, Apple is now under the scrutiny of American antitrust monitors – the Cooperin giant is a defendant in a large-scale investigation conducted by the Federal Trade Commission (FTC). Together with Apple, the regulator is studying the activities of Alphabet, Amazon, Apple, Facebook and Microsoft. So Apple’s motives in this case are obvious. But from this information published in the framework of this study does not become less interesting.

$ 519 billion - total sales through the App Store ecosystem in 2019 [Инфографика]Estimated sales in the App Store ecosystem in 2019: $ 413 billion in goods and services, $ 61 billion in digital goods and services, $ 45 billion in app ads

As you can see from the infographic above, real goods and services occupy the largest part in the total sales structure ($ 413 billion, of which $ 268 billion is sales through applications for mobile commerce, mainly retail chains).

Another $ 45 billion is revenue from advertising in applications, of which 44% of the revenue came from games. Non-gaming applications, which accounted for a large part of the revenue from embedded advertising, are mostly free like Twitter and Pinterest.

Traveling apps like Expedia and United earned another $ 57 billion. At the same time, shipping apps like Uber and Lyft generated $ 40 billion in sales, and shipping services like DoorDash and Grubhub made $ 31 billion.

Now in the App Store, there are over 2 million applications. Every week, 500 million people from 175 countries visit the store.

Source: Apple

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