Yahoo Finance Apple App Commerce Climbed 29% Last Year to $1.1 Trillion
(Bloomberg) -- Apple Inc., touting the value of its App Store just ahead of the company’s developer expo, said that the platform handled transactions worth $1.1 trillion last year, up 29% from 2021.
Most Read from Bloomberg
Apple Headset Looks Sleek in Person But Battery Pack Stands Out
A Wall Street Titan Scores One of the Best Real Estate Trades Ever
A study from Analysis Group that was commissioned by Apple found that annual sales and billings — which include money from apps and subscriptions, in-app advertising and physical goods or services — climbed more than 80% on the App Store since 2019. The latest annual increase was an uptick from growth of 27% in 2021 and 2020.
Apple is facing criticism that it wields too much power over the App Store by putting restrictions on developers and charging them a commission of as much as 30%. In citing the report, the iPhone maker is looking to address those concerns by showing how much money it’s making for developers. The company said that 90% of the $1.1 trillion went entirely to businesses rather than commissions to Apple.
“As this report shows, the App Store is a vibrant, innovative marketplace where opportunity thrives,” Chief Executive Officer Tim Cook said in a statement.
Cook will speak to Apple developers next week at the company’s annual Worldwide Developers Conference, where he’s expected to unveil a mixed-reality headset that will have its own App Store. The device represents Apple’s first major new product category since 2015, and the company will need the support of third-party app developers to make it a success.
According to the Analysis Group report, the biggest driver of App Store commerce last year was general retail, followed by travel. Food delivery and pickup apps generated about $77 billion in 2022, while ride-sharing services made roughly $48 billion. In-app advertising grew to $109 billion from $45 billion in 2019, the report found.
Apple’s App Store commission applies to digital goods, not physical items and services sold through apps.
(Updated with more details on $1.1 trillion figure in third paragraph.)
Most Read from Bloomberg Businessweek
A $1.5 Trillion Backstop for Homebuyers Props Up Banks Instead
Giorgia Meloni Seeks to Cement Power by Remaking Corporate Italy
Google’s Top Lawyer Preps for Fights Over AI and Tech ‘Censorship’
Harvard MBA Grads Enter a Tepid Job Market Hoping for the Best
©2023 Bloomberg L.P.
