As more people surfing the internet on their handsets, it makes sense if App Store growth accelerated last year. Finally, the earnings report of Apple is ready for the last three months of 2020. Let see if it is the case for iPhone, iPad, Mac, and accessories such as AirPods and Apple Watch.
This week, Apple reported its App Store record spending of about $1.8 billion during Christmas week and a new all-time-high for New Year’s Day of $540 million. This was even favored by messaging, video conferencing app, and streaming, and all these were rushed by users amid the pandemic.
As per the CNBC report, the App Store generated $64 billion in 2020 – a 28% year-over-year increase as compared to the previous year. This is certainly a fine peak than that seen from 2018-19. App Store generated $48.5 billion and $50 billion, respectively – a more modest 3.1 percent growth.
Apple does not reveal those specific values. Actually, they are grouped with other revenue streams into “Services.” According to the company, it made $53.7 billion as revenue from this line of business for the fiscal year 2020, which ended in September. This is insufficient to clearly depict the picture of the App Store. Thus CNBC picked a different figure that Apple used to report since 2013, the amount of money Apple has paid to developers.
Those figures allow a relatively easy and rough estimate of how much was generated by the App Store. Apple revealed its paid developers a sum of $200 billion since 2008 and is up to $45 billion when compared to the figure recorded a year ago.it represents 70% of the total App Store sales. When accounted for a 30% cut of apple, you will find $64.3 billion in gross revenue.
At the beginning of this month, Apple initiated the App Store Small Business Program. In this program, developers earning less than $1 million per year will need to pay less commission (rate of 15%). You cannot see the bottom line of the tech giant with the same method. However, it could help developers expand their business more rapidly, which as a result, could lead to an increased gross App Store revenue.