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Apple developers grow App Store ecosystem billings and sales by 24 percent in 2020

As you just learned, app usage is not guaranteed after a download. Some of you might be aware of this if your app has already been brought to market. That’s because the vast majority of apps available on the Apple App Store and Google Play Store are offered for free.

As of 2020, it was estimated to house around 1.8 million apps. On July 10, 2008, Apple’s then-CEO Steve Jobs told USA Today that App Store contained 500 third-party applications for the iPhone and the iPod Touch, and of these 125 were free. By September, the number of available apps had increased to 3,000, with over 100 million downloads. To publish apps on App Store, developers must pay a $99 yearly fee for access to Apple’s Developer Program. Apple announced that, in the United States starting in 2018, it would waive the fee for nonprofit organizations and governments. ] extended to non-profits, educational organizations and governments in additional countries.

You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. In September 2021, the court ruled in Apple’s favor on most counts but found that Apple violated certain unfair competition laws when it barred app developers from redirecting customers to other ways to pay for services. It’s important to note that Apple does not provide a breakdown in its financials of the revenue generated by each one of these services individually, but only as a larger category. Apple groups several of its other products together under the Wearables, Home and Accessories category. This portion of the company’s business includes its AirPods wireless headphone line, the Apple TV media streaming and gaming device, the Apple Watch line of smartwatches, and HomePod and Beats products for the home.

Mac net sales climbed by 14% compared with FY 2021, driven by higher net sales of laptops. In December 2017, Apple announced that developers could offer applications for pre-order, letting them make apps visible in the store between 2–90 days ahead of release. Apple also offered an iTunes Affiliate Program, which lets people refer others to apps and other iTunes content, along with in-app purchases, for a percentage of sales. The commission rate for in-app purchases was reduced from 7% to 2.5% in May 2017 and discontinued completely in 2018.

Over the past four years, the number of app downloads in China has grown by 80%. Here’s another instance where gaming ranks first on a usage list. If you compare this graph to the previous one, you could conclude that a user is more likely to pay for gaming apps that are installed on a tablet.

The trial offered glimpses of actual numbers on App Store profitability, but it was disputed and the actual numbers were hidden from view. In the second week of the trial, in which the maker of “Fortnite” alleged monopolistic practices by Apple AAPL, +0.88%in federal court in Oakland, Calif., Epic called an expert witness — Ned Barnes of the Berkeley Research Group — to the stand. And Netflix is again the top non-game app by consumer spending in the first half of 2018, notes Sensor Tower. Sales data for a specific app includes the sales of all consumables offered in the app.

View data related to your subscription retention, as well as data on conversion rates for your introductory and promotional offers. The Retention Trends for Standard Paid Subscriptions section shows the percentage of subscriptions that were renewed for consecutive plastic knives for self defense periods. You can filter this information by a specific subscription to understand which start months have the highest retention and investigate contributing factors — for example, launching new content in a particular month or a seasonal marketing campaign.

In the same period, the number of available mobile apps in the Apple App Store grew by more than six percent compared to the fourth quarter of 2020. The most popular app category in the Apple App Store was mobile gaming, which represented 21 percent of the active apps available in the store. But as an assumption, 30% for Apple’s take is closer than 15%. Analysis by RevenueCat, a company making software to help Apple developers to bill subscriptions, found that only 16% of apps that it works with manage a “take home” rate above 75%. The apps that make the most money on the App Store are usually games, which aren’t subscription-based, but monetize through in-app purchases, which are billed by Apple at 30%. The games removed in the first seven days of July had generated a combined $34.7 million in lifetime gross revenue in China, and had accumulated more than 133 million downloads in the country.

For a subset of developers on the App Store, acquisitions and public offerings have blazed trails, enabling them to grow their businesses even further. The new study, “A Global Perspective on the Apple App Store Ecosystem,” takes an in-depth look at how the App Store supported small businesses, which have quickly become a thriving and inclusive engine of opportunity for economies around the world. The number of small developers worldwide has grown by 40 percent since 2015 — and they make up more than 90 percent of App Store developers. The study defines small developers as those with fewer than 1 million downloads and less than $1 million in earnings across all their apps in a given year. View your total subscription activations, conversions to standard price, reactivations, renewals, and more.

Apple app sales total $1.43 billion, with Apple getting 30%, or $429 million. After you factor out payment to the credit card companies and storage and delivery, Apple’s gross profit is $189 million. Intraday Data provided by FACTSET and subject to terms of use.