US App Store Ecosystem Reaches $406 Billion in 2024
Apple announced that its US App Store ecosystem facilitated $406 billion in developer billings and sales in 2024. This figure represents nearly triple the $142 billion generated in 2019.
A new Apple-funded study by Boston University and Analysis Group highlights this growth. The study emphasizes that 90% of App Store billings and sales involve no commission paid to Apple.
Ongoing App Store Commission Debate
This report comes amid ongoing scrutiny of Apple's App Store practices. While Apple highlights the success of its small business program and the growth of developer earnings, critics continue to raise concerns about commission structures.
Recent legal battles, such as the Epic Games lawsuit, have forced Apple to allow developers to link to external payment options. Apple is currently appealing this ruling.
Developer Earnings and App Store Benefits
Apple emphasizes that US developer earnings have more than doubled in the past five years. Small business developers saw a 76% increase in earnings from 2021 to 2024, likely influenced by the 2020 launch of Apple's Small Business Program, which reduced commissions for developers earning under $1 million annually.
Apple also highlighted the App Store's global reach of 175 countries and regions, its fraud prevention measures, and extensive developer resources like APIs and frameworks.
Breakdown of App Store Billings and Sales
The report details App Store revenue streams where developers don't pay commission:
- $277 billion from physical goods and services
- $75 billion from in-app advertising
- $53 billion from digital goods and services
Since 2019, spending on physical goods and services has more than tripled, while in-app spending on digital goods, services, and advertising has more than doubled. General retail and grocery delivery spending increased more than fourfold.
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