Apple’s App Store Generates $1.3 Trillion in Developer Billings and Sales in 2024
As Apple gears up for its Worldwide Developer Conference on June 9, the tech giant has provided an update on its global App Store business. According to a recent announcement, developers raked in an impressive $1.3 trillion in billings and sales in the year 2024. Notably, a significant portion of these earnings ā 90% to be exact ā did not involve paying Apple a commission.
The breakdown of these figures reveals that digital goods and services accounted for $131 billion in developer billings and sales, driven primarily by mobile games, photo and video editing apps, and enterprise tools. On the other hand, physical goods and services saw a whopping $1 trillion in sales, fueled by the rising demand for online food delivery and pickup services, as well as online grocery apps.
In addition, in-app advertising revenue reached $150 billion in 2024. The overall spending across digital goods and services, physical goods and services, and in-app advertising has more than doubled since 2019. Physical goods and services experienced the strongest growth, expanding by over 2.6 times.
The data underscores the financial opportunities that the App Store creates for mobile developers, beyond just in-app purchases. The platform serves as a gateway for developers to showcase their apps to consumers, while Apple provides the necessary technical infrastructure for running a successful app business.
However, critics argue that the App Store has become a mature ecosystem, with apps being a key selling point for Apple’s devices. Developers now have alternative tools for hosting and managing their applications, but Apple’s policies restrict their freedom in this regard.
Recent legal developments, such as the court ruling favoring Epic Games in the U.S., have pushed Apple to allow developers to link to their own websites for in-app purchases without paying a commission. In Europe, Apple is contesting rules proposed by the Digital Markets Act that would grant developers the right to inform customers about alternative payment methods.
The latest insights stem from a study commissioned by Apple and conducted by economists Professor Andrey Fradkin from Boston University Questrom School of Business and Dr. Jessica Burley from Analysis Group. Dr. Burley has collaborated with Apple on various antitrust cases to showcase the positive impact of the App Store for the company.
The study also highlights regional growth trends, revealing that billings and sales on the App Store have more than doubled over the past five years in the U.S., China, and Europe. Notably, digital payment spending in the U.S. has surged by over 7 times since 2019, driven by widespread adoption of mobile payments.
Furthermore, the report emphasizes Apple’s investments in developer tools and technologies, including coding and distribution platforms, frameworks, analytics, anti-fraud systems, and developer support. The App Store continues to attract 813 million average weekly visitors globally, showcasing its importance in the digital ecosystem.
