- Apple on Monday said it will pay developers $60 billion in 2021, a figure that suggests App Store sales are growing rapidly.
- The figure came as part of a broader announcement from Apple intended to show momentum for its services business, an important sign for investors and analysts.
- Apple pays developers between 70% and 85% of Apple’s total gross from its App Store, which is between 15% and 30% from digital purchases made in apps.
Apple on Monday said it paid developers $60 billion in 2021, or $260 billion in total since the App Store launched in 2008. This is a statistic that suggests that App Store sales are growing rapidly.
By comparison, Apple said in 2019 it paid developers a total of $155 billion since 2008. And at the end of 2020, it said it had paid $200 billion, an increase of $45 billion. Monday’s figures show a jump of $60 billion.
figure a. came as part of Massive announcement from Apple It is to show momentum for its services business, which is an important sign for investors and analysts who like to make money from Apple not only selling hardware but also selling services and apps to its customers such as app downloads. Huh.
Apple pays developers between 70% and 85% of Apple’s total gross from its App Store, which is between 15% and 30% from digital purchases made in apps.
In the past, it’s possible to fall back on a rough estimate for the total revenue of Apple’s App Store, assuming that payments to developers were equal to 30% of Apple’s total App Store sales. But, over the past year, the company has changed its commission structure several times in response to regulatory and legal challenges.
Notably, in 2021 Apple introduced the Small Business Program, which cut fees by 15% for developers making less than $1 million per year. According to estimates, 98 percent of App Store developers fall into this category, but it’s only a small part of total sales.
Apple also introduced a program for News apps that in August will reduce their fees for providing content to Apple News to 15%. For all developers, Apple also takes 15% of the second year of subscription instead of only 30%.
If Apple’s commissions were a similar 30%, it generated the highest ever, $85.71 billion in App Store sales in 2021, based on a Businesshala analysis. If Apple’s commission were all 15%, it would drop to $70.58 billion.
Last year, a Businesshala analysis suggested that Apple’s App Store generated more than $64 billion in 2020 based on a 30% commission rate.
Apple also said Monday that it has 745 million paid subscriptions, which includes services provided by Apple such as Apple Music and iCloud, and includes any customer who subscribes to an app through the App Store. Is. That’s up from 700 million last summer.