Apple has been criticized over the past few years for its App Store policies. Like Google, Apple takes a cut from app sales and in-app purchases, which has offended many developers, like Epic Games. However, the company recently announced that for 2024, the Apple App Store generated over 400 billion dollars in developer billings and sales.
Apple pays over 400 billion to devs
According to Apple, “Over the last five years, the size of the App Store ecosystem has nearly tripled from $142 billion in 2019 to $406 billion last year, and earnings for U.S.-based developers also more than doubled. Small developers in particular have done exceptionally well as their earnings increased by 76 percent between 2021 and 2024.”
Apple’s CEO Tim Cook adds, “For more than 15 years, the App Store has created incredible opportunity for app developers, entrepreneurs, and businesses of all sizes. That includes the many U.S. developers who are innovating, building their businesses, and finding exceptional success on the App Store. We’ll continue to invest in powerful tools, technology, and resources to help developers in the U.S. and around the world take their apps to new heights and create transformative experiences for users.”
This is according to a study conducted by Professor Andrey Fradkin from Boston University Questrom School of Business and economist Dr. Jessica Burley from Analysis Group. However, we should point out that this is an Apple-funded study. This means that there is a chance its findings aren’t completely unbiased. It also feels quite obvious what Apple is trying to do.
Apple’s spin
This study is basically Apple telling the world how much money developers have made from its App Store in 2024; 400 billion dollars is no chump change. However, we have to wonder how much Apple itself made from commissions. It’s undoubtedly a good thing that the App Store has helped generate this much money. It has also given jobs and new opportunities for developers worldwide.
However, some developers, like Epic Games, have taken issue with the cut Apple takes, as well as its policies. This includes forbidding developers from pointing users to outside, alternative payment systems. This led to a lawsuit, which, for the most part, Apple won. But it was still forced to make some changes to the App Store.
Apple notes that in this study, developers did not have to pay the company a commission for more than 90% of billings and sales.
