Every January, Apple publishes information on the total amount of money App Store developers have earned since 2008. This allows Apple analysts and investors to get an idea of how much money the App Store is making. New data suggests that the growth of the Apple App Store has stopped.
Apple reported that it paid out $320 billion to developers, up from $260 billion last year. So last year, the company paid out $60 billion. Developers receive between 70% and 85% of the gross sales of their apps, depending on whether they have the right to a preferential rate of Apple. Thus, the estimated gross revenue of the App Store in 2022 should be in the range of about $70-85 billion.
Those numbers are roughly in line with last year’s figures, when Apple said it would pay out $60 billion to developers in 2021. This is a rough estimate and subject to change, as it is unclear what proportion of developers paid the standard 30% commission each year and what proportion paid the 15% preferential rate. Also, Apple’s statistics are rounded, which introduces additional error.
Apple has said that attempts to extrapolate the size of the App Store business based on developer earnings are inaccurate. This is due both to different commission rates and to the fact that the vast majority of developers pay a lower commission under the App Store Small Business Program. It applies to developers with an annual income of less than $1 million per year.
Course
EMPLOYER BRANDING
Build a high-quality and attractive employer brand in just one month.
REGISTER!
Apple said 2022 was a “record year” for the App Store and reported 900 million subscriptions, up from 745 million in 2021. Apple’s statistics include everyone who subscribes to a service through the Apple App Store, not just its own services like Apple TV+ and Music.
At the same time, new data indicate a slowdown in the growth of the App Store. This is important to investors because the App Store is a core part of Apple’s services business and a source of revenue for the company.
Apple’s services business grew to $78.1 billion in fiscal 2022, which is 14% more than the previous year. But this is a significant slowdown compared to the 27% growth rate at the end of fiscal year 2021.
Source: cnbc
