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Yahoo
2 days ago
- Business
- Yahoo
Apple's App Store generated nearly $1.3 trillion in sales in 2024
Apple's (AAPL) App Store facilitated almost $1.3 trillion in sales and billings in 2024, the company announced Thursday. The findings, part of a report commissioned by Apple and performed by Analysis Group's Jessica Burley and Boston University professor Andrey Fradkin, show that App Store sales across both physical and digital goods have exploded over the last 5 years, climbing from $514 billion in 2019 to $1.29 trillion last year. Some 78% of sales, $1.01 trillion worth, came via the sale of physical goods and services, which includes categories like general retail, travel, food delivery, and ride hailing. Another 10% came from digital goods and services like in-app purchases for games. The final 12% came from in-app advertising revenue. The US accounted for the majority of sales and billings related to both in-app purchase and in-app advertising, coming in at $53 billion, and $75 billion, respectively. China accounted for the largest market for physical goods and services by far, hitting $484 billion compared to the US's $277 billion. The study notes that Apple collected less than 10% of the $1.3 trillion via commissions. Apple collects a 30% commission on the sale of digital goods and services purchased through the App Store. Developers that made up to $1 million in the previous year pay a reduced 15% commission as part of Apple's Small Business Program. For subscriptions, the company collects an initial 30% commission, which then drops to 15% for each subsequent year. Governments around the world are scrutinizing Apple's App Store practices. South Korea requires Apple and rival Google to offer alternative in-app payment methods in the country, while the European Union and Japan require the companies to give users the ability to access third-party app stores. In the US, Apple is facing off against 'Fortnite' developer Epic Games as part of the duo's ongoing antitrust suit. At the heart of the matter is whether Epic should be able to circumvent Apple's in-app payment system, thereby avoiding Apple's App Store commissions. Epic initially accused Apple of violating antitrust laws by requiring developers to use the company's in-app payment systems. Ultimately, US District Judge Yvonne Gonzalez Rogers found that Apple didn't hold a monopoly over the market for 'digital mobile gaming transactions,' but did violate California's antitrust laws via anti-steering provisions in its App Store rules. As part of the ruling, Apple was supposed to allow developers to offer payment options outside of the App Store. Apple did, however, also collect a 27% commission on those payments. Last month, Gonzalez Rogers hit back at Apple saying CEO Tim Cook 'chose poorly,' in the move and ordered the company to remove the 27% commission. The healthy increase in App Store sales over the last 5 years could help ease some of investors' concerns around Apple's Services business. Apple currently collects roughly $20 billion a year in fees from Google as part of an agreement that requires Apple to make Google the default search engine for its Safari web browser. But that deal could be on the chopping block as part of Google's antitrust battle with the Justice Department. Email Daniel Howley at dhowley@ Follow him on X/Twitter at @DanielHowley.
Yahoo
27-05-2025
- Business
- Yahoo
Apple Just Blocked $2 Billion in Fraud--But Here's What It Really Wants You to See
Ahead of WWDC 2025, Apple (NASDAQ:AAPL) is making one thing crystal clear: the App Store isn't just a payment processor it's a fortress. In its latest disclosure, Apple reported blocking $2 billion in fraudulent transactions in 2024, rejecting nearly 2 million risky app submissions, and terminating over 146,000 developer accounts for fraud. The company also deactivated 129 million customer accounts and prevented 4.6 million attempts to install apps outside official or authorized channels. With more than 813 million weekly App Store visitors, Apple is spotlighting the scale and the stakes of its platform as new payment rules go into effect. Warning! GuruFocus has detected 1 Warning Sign with PDD. Last month's court ruling in favor of Epic Games forced Apple to allow U.S. developers to link to alternative payment methods. While major apps like Spotify and Fortnite have already moved fast, Apple is targeting its message at smaller developers still weighing their options. Its argument? Going solo means shouldering fraud risk, chargebacks, piracy, and user data abuse the very issues Apple says it spends billions mitigating. According to early data from subscription platform RevenueCat, many smaller apps may find the economics of switching don't add up, even with Apple's 15% Small Business Program discount. Apple is also navigating pressure from Europe's Digital Markets Act, which now lets users sideload apps and tap into third-party app stores. But that freedom comes with risk. Apple warns that pirate storefronts are loaded with malware, unauthorized clones, and scams. It claims to have blocked over 10,000 such apps last year alone. While regulators push for openness, Apple is betting that developers especially smaller teams without dedicated fraud and compliance teams may still prefer the safety of its walled garden, even at a cost. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
27-05-2025
- Business
- Yahoo
Apple Just Blocked $2 Billion in Fraud--But Here's What It Really Wants You to See
Ahead of WWDC 2025, Apple (NASDAQ:AAPL) is making one thing crystal clear: the App Store isn't just a payment processor it's a fortress. In its latest disclosure, Apple reported blocking $2 billion in fraudulent transactions in 2024, rejecting nearly 2 million risky app submissions, and terminating over 146,000 developer accounts for fraud. The company also deactivated 129 million customer accounts and prevented 4.6 million attempts to install apps outside official or authorized channels. With more than 813 million weekly App Store visitors, Apple is spotlighting the scale and the stakes of its platform as new payment rules go into effect. Warning! GuruFocus has detected 1 Warning Sign with PDD. Last month's court ruling in favor of Epic Games forced Apple to allow U.S. developers to link to alternative payment methods. While major apps like Spotify and Fortnite have already moved fast, Apple is targeting its message at smaller developers still weighing their options. Its argument? Going solo means shouldering fraud risk, chargebacks, piracy, and user data abuse the very issues Apple says it spends billions mitigating. According to early data from subscription platform RevenueCat, many smaller apps may find the economics of switching don't add up, even with Apple's 15% Small Business Program discount. Apple is also navigating pressure from Europe's Digital Markets Act, which now lets users sideload apps and tap into third-party app stores. But that freedom comes with risk. Apple warns that pirate storefronts are loaded with malware, unauthorized clones, and scams. It claims to have blocked over 10,000 such apps last year alone. While regulators push for openness, Apple is betting that developers especially smaller teams without dedicated fraud and compliance teams may still prefer the safety of its walled garden, even at a cost. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
