Latest news with #AndreyFradkin
Phone Arena
3 days ago
- Business
- Phone Arena
$406 billion moved through the App Store last year and most of it skipped Apple's cut
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 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 remained the top-earning category, but productivity, education and business apps also saw strong 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 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.
TechCrunch
4 days ago
- Business
- TechCrunch
Apple's US App Store topped $400B in developer billings and sales in 2024
Just ahead of its Worldwide Developers Conference next month, Apple on Thursday announced new figures related to the U.S. App Store's financial success. The company says its U.S. App Store ecosystem has generated $406 billion in developer billings and sales in 2024 — a figure that's nearly tripled in size since 2019, when it then generated $142 billion. Apple also made a point to note that, for 90% of the billings and sales facilitated by the App Store, developers paid no commission. The new figures come from an Apple-funded study conducted by Professor Andrey Fradkin from Boston University Questrom School of Business and economist Dr. Jessica Burley from Analysis Group. The Analysis Group has been working with Apple for years amid growing antitrust scrutiny to create reports and studies that showcase the App Store's market power in a more favorable light and as a net positive for developers. In particular, these studies have stressed that only a small sliver of Apple's developer base even pays Apple commissions, and the majority of those who do so are on a Small Business plan or other programs where their commission is reduced from the standard 30% to 15%. However, those findings haven't protected Apple from being forced to open up the App Store to increased competition in the U.S. Last month, U.S. District Judge Yvonne Gonzalez Rogers ruled that Apple had violated the court's order arising from Fortnite maker Epic Games' lawsuit that had required Apple to reform its App Store's policy around external payments. As a result of that ruling, Apple was forced to let developers add links to their app that point to web payment options, where Apple is not allowed to take a commission. Apple is now in the process of appealing the ruling. Techcrunch event Save now through June 4 for TechCrunch Sessions: AI Save $300 on your ticket to TC Sessions: AI—and get 50% off a second. Hear from leaders at OpenAI, Anthropic, Khosla Ventures, and more during a full day of expert insights, hands-on workshops, and high-impact networking. These low-rate deals disappear when the doors open on June 5. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you've built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | REGISTER NOW The years-long fight over App Store commissions has led to increased hostility and disappointment from members of the iOS developer community, who believe that their applications are part of the reason for the iPhone's historical success. Many feel they should be treated with more gratitude for their efforts, and not as a resource to extract money from. Apple, on the other hand, staunchly believes that the App Store itself is the reason for the developers' success, as it provides the marketplace that allows consumers to discover new apps and easily pay for the developers' software and services. That comes through in Apple's latest report as well, where Apple notes that earnings for U.S.-based developers have more than doubled over the last five years, while small business developers have seen earnings increase by 76% from 2021 to 2024. (The latter number is not surprising. In 2020, Apple launched its Small Business Program that reduced commissions for developers making less than $1 million per year. An earnings increase is to be expected.) Apple also reminds U.S. developers that its App Store allows them to reach a global market of 175 countries and regions, and it prevents billions in fraudulent transactions. Its developer investments include 250,000 APIs, as part of frameworks like HealthKit, Metal, Core ML, MapKit, and SwiftUI. Additionally, the new report highlights how much developers are making from the App Store in areas where they don't have to pay commission. For instance, Apple says that last year, the U.S. App Store ecosystem facilitated $277 billion in total billings and sales from physical goods and services, $75 billion from in-app advertising, and $53 billion from digital goods and services. It also notes that, since 2019, spending on physical goods and services more than tripled and in-app spending on digital goods and services and in-app advertising more than doubled. General retail spending and grocery delivery increased more than fourfold.
