Apple’s App Store generated $1.1 trillion in sales and revenue for developers worldwide last year, according to a study by market research firm Analysis Group. 90 percent of this went directly to the developers and third-party companies with no commission to Apple, it said.
The revenue recorded in the study goes far beyond the revenue from actual app sales and subscriptions purchased in the App Store. Economists from the Analysis Group estimate that the equivalent of 853 billion euros arises from the sale of physical goods and services via apps. About 102 billion euros comes from advertisements within the apps. Almost 98 billion euros were generated with digital goods and services.
At the same time, Apple referenced a Progressive Policy Institute study of the impact on the labor market. According to this report, more than 4.8 million jobs in the US and Europe alone depend on the App Store for iPhone and iPad apps, about 2.4 million in each region.
In terms of revenue, the growth of online commerce in China is mainly responsible for crossing the trillion mark. There alone, the Analysis Group recorded the sale of goods and services via apps from the store for the equivalent of 490 billion euros. Europe amounts to almost 112 billion euros in all areas.
Opening App Store: Apple defends itself against EU plans
Apple’s reference to economic importance comes against the background of the recently passed European Digital Markets Act (DMA). The DMA will come into its own this year and into 2024. After that, “gatekeepers” like Apple may be forced to allow alternate app stores as well.
The DMA also mandates that smartphone users must be able to install apps directly from the Internet. Apple sees this as a threat to users. The iPhone manufacturer criticizes that this step gives malicious parties the opportunity to circumvent Apple’s extensive security measures.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
