Global App Spending Passed $100 Billion in 2020

Research from Statista.com

https://www.statista.com/chart/22377/global-consumer-spending-on-leading-app-stores/

Google and Apple are thriving in the App Marketplace and making a killing from the App developer community.

Data Journalist Felix Richter says that “Faced with antitrust allegations and the wrath of (some) app makers, Apple extended an olive branch to its developer community in November by introducing the App Store Small Business Program, which reduces the company’s app store commission from 30 to 15 percent for developers earning less than $1 million a year.

Ever since the App Store was launched in 2008, Apple has taken a 30-percent cut on app sales, in-app purchases of digital content and subscriptions made via iOS apps (the latter dropping to 15 percent after the first year), which has lately drawn the attention of competition watch dogs, especially in cases where Apple competes with third-party app makers (e.g. Apple Music vs. Spotify).

While Apple’s decision to cut its commission in half for small developers looks like a big concession to make, data suggests that developers eligible for the program only account for a small fraction of App Store revenue. The following chart explains why Apple is fighting so hard to protect its slice of the app store pie. According to estimates from app analytics firm SensorTower, App Store revenue amounted to more than $70 billion last year. Assuming most of that total qualifies for Apple’s commission, that amounts to roughly $20 billion in revenue last year alone, which even for Apple is no small change.”

Categories: Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s