Apple announced Wednesday that the App Store generated $1.1 trillion in developer billings and sales in 2022. The Cupertino giant, citing an independent study by economists from Analysis Group, said 90 percent of the revenue came from billings and sales from developers and businesses of all sizes that paid no commission to Apple.
Citing new analysis from the Progressive Policy Institute, Apple said the iOS app economy now supports more than 4.8 million jobs across the U.S. and Europe, with approximately 2.4 million in each region.
Apple’s market value is nearing $3 trillion, with a significant part coming from its App Store.
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The economists from Analysis Group estimate that last year, App Store developers generated $910 billion in total billings and sales from the sale of physical goods and services, $109 billion from in-app advertising, and $104 billion for digital goods and services.
“We’ve never been more hopeful about — or more inspired by — the incredible community of developers around the world,” said Tim Cook, Apple’s CEO. “As this report shows, the App Store is a vibrant, innovative marketplace where opportunity thrives, and we’re as committed as ever to investing in developers’ success and the app economy’s future.”
While Apple’s market value relies mainly on its major business – sales of devices and gadgets, the App Store has gradually become a formidable force in the company’s life. However, the App Store’s growth has been sustained through a symbiotic relationship with apps.
App creators and entrepreneurs, like musical accompaniment app Metronaut Sheet Music, by French company Antescofo, have relied on the App Store to put their products into the hands of users around the world, according to Apple.
Further study by the Analysis Group highlights key drivers behind the growth in the App Store ecosystem — including rebounding demand for sectors like travel and ride-hailing, and strong growth in advertising spend in apps like social media and retail apps. The Group noted that developer billings and sales increased by 27 percent between 2019 and 2020; 27 percent between 2020 and 2021; and 29 percent between 2021 and 2022.
“Small developers in particular found tremendous success on the App Store — outpacing larger developers by growing their earnings by 71 percent between 2020 and 2022,” the Analysis Group said.
A statement by Apple noted that the economists at Analysis Group believe growth rates of this kind are positive indicators, consistent with a flourishing marketplace full of dynamism, innovation, and competition.
The App Store was launched in 2018 but has since become the host of nearly 2 million apps. Since 2019, U.S. developers’ billings and sales have increased by more than 80 percent. In Europe, developers’ billings and sales since 2019 saw an above-average increase of 116 percent, according to Apple.