$406 billion moved through the App Store last year and most of it skipped Apple's cut

Phone Arena

a day ago

The App Store is the main hub where iOS users and developers come together. Apple backs it with plenty of resources and tools to keep things safe and trustworthy. Speaking of which, just recently, Apple revealed it has stopped over $9 billion in fraud over the last five years. And now, the company is opening up with even more impressive stats about the App Store.Apple just dropped some big numbers about its App Store, showing just how massive the ecosystem has become – and I think it's clearly trying to show regulators and critics that it's not as greedy as some claim.
According to a new study backed by Apple, the App Store facilitated $406 billion in developer billings and sales in 2024 in the US alone and over 90% of that didn't result in any commission going to Apple. That stat might raise eyebrows, but here's the catch: Apple's definition of "facilitated by the App Store" includes stuff like Uber rides, DoorDash orders, retail purchases through store apps and even ad revenue. Since Apple doesn't take a cut from physical goods, real-world services or in-app ads, most of that massive $406B doesn't go through Apple's commission system, but even more on that in just a bit. The study, conducted by Boston University professor Andrey Fradkin and economist Dr. Jessica Burley, highlights just how much the App Store has grown. In fact, the ecosystem has nearly tripled in size since 2019 – back then it was $142 billion. Earnings for US developers more than doubled in that same period and small developers saw a 76% increase in revenues from 2021 to 2024. – Tim Cook , Apple's CEO, May 2025
In 2024 alone, the App Store helped drive a massive $406 billion in developer billings and sales in the US. | Image credit – Apple In 2024, the App Store ecosystem in the US broke down like this: $277 billion from physical goods and services (think retail shopping, food delivery, travel)
$75 billion from in-app advertising
$53 billion from digital goods and services (like in-app purchases, subscriptions, etc.) Apple says spending on physical goods and services has more than tripled since 2019. Travel and food delivery even passed ride-hailing in 2024. Meanwhile, digital goods and in-app ad spending more than doubled.Gaming remained the top-earning category, but productivity, education and business apps also saw strong growth.Apple says US-based developers are finding success worldwide, with their apps ranking among the top 5 most downloaded in 170 out of 175 storefronts. The App Store's global payment and commerce system is a big reason why developers are able to monetize easily around the world.
The company is also rolling out more tools to help developers grow, including updates to App Store Connect, better analytics and new features like App Store Accessibility Nutrition Labels coming later this year. So, back to that 90% figure – it's not that Apple suddenly got generous. It's more about how it defines what counts as App Store-related revenue. If someone buys a meal through a restaurant's app or grabs an item off Amazon, Apple facilitates that transaction by hosting the app but doesn't take a cut.
But when it comes to digital goods – like game items, subscriptions or premium features – Apple definitely takes its slice. It's 15% for smaller devs and 30% for the bigger ones. That cut has been the center of a lot of criticism and legal fights, like the battle with Epic Games that recently forced Apple to allow alternate payment options in the US. Apple says its fee covers way more than just processing payments. It points to things like fraud prevention, customer support, app discovery and tight integration across devices. Still, for many developers, that 30% feels steep – especially when their entire business depends on in-app purchases.What started back in 2008 as a pretty simple setup – devs make apps, Apple takes a small cut – has now become one of the biggest platforms in the world. And the debate over how it monetizes that ecosystem isn't going away anytime soon.