In context: With more people investing their time glued to their mobile devices, it’s no surprise the App Shop development sped up in2020 Apple is set to report incomes for the last three months of 2020, so it will be interesting to see if that’s likewise the case for iPhone, iPad, Mac, and accessories like the Apple Watch and AirPods.
Apple exposed this week that the App Shop saw record spending of $1.8 billion throughout Christmas week, along with a brand-new all-time high for New Year’s Day of $540 million. This was sustained by streaming, messaging, and videoconferencing app, all of which saw a rise in usage amidst the pandemic.
According to a CNBC report, the App Store earned over $64 billion in 2020, which is a 28 percent year-over-year boost when compared to2019 This is a larger jump than the one seen from 2018 to 2019, when the App Shop created $485 billion and $50 billion, respectively– which is a more modest 3.1 percent growth.
Apple does not report these particular numbers and rather they’re lumped together with other profits streams into “Solutions.” The company states it made $537 billion in revenue from that industry for the financial 2020 year, which ended in September. That’s not enough to get a great photo of the App Shop, so CNBC used a different figure that Apple has been reporting considering that 2013– the amount of cash the company has actually paid to developers.
Based on those numbers, it’s relatively simple to get a rough quote of how much profits was produced by the App Shop. Given that Apple reported it’s paid designers a total of $200 billion because 2008 and this is up $45 billion compared to the figure reported a year ago, this figure represents 70 percent of the overall App Shop sales. If you account for Apple’s 30 percent cut, you reach that $643 billion in gross earnings.
Previously this month, Apple started the App Shop Small Business Program, in which designers that make less than $1 million per year pay a lowered commission rate of 15 percent. This is unlikely to assess Apple’s bottom line, but it might assist iOS developers grow their services quicker, which in turn could lead to a boost in overall App Shop earnings.