According to a recent analysis by Appfigures, Apple’s U.S. App Store generated over $10 billion in revenue last year, marking a significant surge in its earnings. Between 2020 and 2024, the revenue derived from App Store commissions more than doubled; it jumped from approximately $4.76 billion in 2020 to an estimated $10.1 billion in 2024.
Appfigures estimates that developers in the U.S. earned around $33.68 billion in gross revenue from apps and games utilising Apple’s payment system in 2024, of which they retained approximately $23.57 billion after Apple’s commission. Despite Apple rarely disclosing specific App Store earnings, its report from May 2023 highlighted a global revenue of $104 billion from digital goods and services in 2022. However, Appfigures reported a $61.5 billion revenue for the App Store in that same year, which is projected to rise to $91.3 billion in 2024, resulting in global commissions of over $27.39 billion for Apple.
This discrepancy between Appfigures’ assessment and Apple’s figures stems from Apple’s classification of “billings and sales,” which encompass sales outside of the App Store. Apple includes revenue generated from transactions where purchases happen elsewhere but are facilitated through its ecosystem. For example, if a user buys a Hulu subscription online but views content predominantly on Apple devices, Apple factors in a percentage of that user’s overall spend, claiming a portion as facilitated through its platform.
As recent court rulings have further illuminated, the dynamics of App Store revenue are becoming increasingly crucial. Apple has found itself at the centre of legal disputes, particularly following an injunction that limits its ability to charge a commission on transactions external to the App Store. This ruling comes in the wake of an antitrust battle with Epic Games. In response, Apple modified its policies, permitting developers to direct users to external purchase options, albeit under stringent conditions that included imposing a 27% commission on such transactions.
A recent court decision deemed Apple in “willful violation” for continuing to charge fees on external purchases, prompting the company to update its policies allowing developers to link to alternative payment solutions without additional fees. This change has enabled various applications like Spotify and Amazon Kindle to implement web payment options. Nevertheless, Apple is contesting the ruling, claiming it poses “grave irreparable harm” to its revenue stream, arguing that the ruling unfairly penalises its operations.
Despite these challenges, the analysis by Appfigures underscores how vital App Store revenue is to Apple’s financial health and its determined efforts to maintain control over the platform. Appfigures attributes approximately $6.28 billion and $3.83 billion of App Store revenue to apps and games respectively in 2024, reinforcing the economic significance of the App Store in Apple’s overall business strategy.
Fanpage: TechArena.au
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