Apple App Store Fuels $1.3 Trillion in 2024 Sales
Apple recently announced that its App Store ecosystem generated a staggering $1.3 trillion in developer billings and sales during 2024. Impressively, 90% of these transactions did not involve a commission paid to Apple.
Digital and Physical Goods Drive Growth
Digital goods and services, including mobile games, photo and video editing apps, and enterprise tools, contributed $131 billion. Physical goods and services, fueled by the rising demand for online food delivery, pickup, and grocery apps, surpassed $1 trillion.
In-app advertising revenue reached $150 billion in 2024. Since 2019, spending across all three categories (digital goods and services, physical goods and services, and in-app advertising) has more than doubled. Physical goods and services experienced the most significant growth, increasing more than 2.6 times.
The App Store: A Platform for Developer Success
These figures highlight the App Store's role in creating financial opportunities for developers beyond in-app purchases. The platform provides discoverability and the necessary technical infrastructure for running an app business.
Evolving Landscape of In-App Purchases
While the App Store offers significant benefits, its mature ecosystem and Apple's policies have faced scrutiny. Developers are seeking more control over distribution and monetization.
Recent legal developments, such as the Epic Games ruling in the U.S., are forcing changes. This ruling requires Apple to allow developers to link to their own websites for processing in-app purchases, bypassing Apple's commission. In Europe, the Digital Markets Act (DMA) proposes similar regulations, granting developers the right to inform users about alternative payment options. Apple is currently contesting these regulations.
Study Methodology and Regional Growth
The data comes from an Apple-funded study conducted by Professor Andrey Fradkin from Boston University and Dr. Jessica Burley from Analysis Group. Analysis Group has previously worked with Apple on antitrust cases.
The study also revealed significant regional growth. App Store billings and sales more than doubled in the U.S., China, and Europe over the past five years. Digital payment spending in the U.S. increased more than sevenfold since 2019, driven by the widespread adoption of mobile payments.
The report also noted that the App Store attracts an average of 813 million weekly visitors globally. It highlighted Apple's investments in developer tools and technologies, including coding and distribution platforms, frameworks, analytics, anti-fraud systems, and developer support.
