As per a new analysis, Apple’s App Store saw sales of approximately $64 billion in 2020. This is $14 billion more than the sales it posted in 2019. Despite the on-going pandemic, people spent a lot more money on apps and games from the App Store.
CNBC reports that App Store revenue saw a growth of 28% in 2020, up from just 3.1% in 2019. The revenue was generated primarily via the 30% commission that Apple charges, which has been a point of contention between the company and some developers. The company recently rolled out its App Store Small Business Program through which developers will only have to pay 15% cut of their revenue to Apple, as long as their annual earnings are less than $1 million.
App Store saw more than $64 billion in revenue – CNBC
Apple does not report App Store revenue individually as it combines it along with other services revenue. CNBC calculated the revenue by using the sales numbers that Apple provides about how much it pays App Store developers every year. This number is still a rough value, as Apple had already been taking just 15% cut from some developers, such as Amazon.
Apple recently announced that App Store saw a record $540 million spendings on New Years Day, and $1.8 billion spendings between Christmas Eve and the end of the year.
Sensor Tower had recently reported that an estimated $72.3 was spent on the App Store, with most of it, $47.6 billion, spent on games. The company also reported that App Store and Google Play Store saw combined spending of more than $100 billion, the first time that this has happened since the digital stores launched.
- More than $100 billion were spent in App Store and Google Play Store in 2020 – Report
- Apple removes 39,000 unlicensed videos games from China App Store
- Apple software chief wants competitors to copy its App Store privacy labels
- Developers can now enroll for the Apple App Store Small Business Program
- Apple’s upcoming ATT privacy feature has shaken the ad industry