Apple's App Store Billings Triple to $406 Billion in Five Years
Apple (NASDAQ:AAPL) dipped after revealing its App Store facilitated $406 billion in developer billings and sales in 2024nearly triple the $140 billion posted five years earlierand boosted small-developer earnings by 76% between 2021 and 2024. The company said 90% of that volume incurred no commission, underscoring efforts to support entrepreneurs globally.
Tim Cook hailed the App Store's 15-year run as incredible opportunity for businesses in 175 countries, even as Apple battles a U.S. judge's order to allow more competitive app downloads and payment optionsa dispute born from Epic Games' antitrust case.
Apple also flagged that it stopped over $9 billion in fraud over five years, including $2 billion in 2024, and blocked nearly two million risky app submissions. While critics slam its 30% fee and closed ecosystem, Apple argues its secure payment system and seamless global storefront give developers a trusted platform.
Investors should care because the App Store now drives a significant portion of Apple's Services revenuenearly $110 billion last yearand strong developer growth may help offset hardware cyclicality.
With Apple's Services segment due to report growth metrics at the next earnings call in late July, markets will be watching whether this developer momentum translates into an uptick in subscription and in-app purchase revenue.
This article first appeared on GuruFocus.
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