On 15th June 2020, Apple announced that in 2019 alone the App Store ecosystem provided $519 trillion for worldwide accounts and sales. The new study by independent economists at the Analysis Group found mobile trade (m-commerce), digital services, and apps, the highest value categories. The new study was conducted by independent economists. The results encompass the entire sweep of the dynamic, competitive, and prosperous app economy that unleashed an innovative torrent through 175 countries and revolutionized the way the world learns, operates, and connects.
The study shows that Apple developers only receive a fraction of the vast amount of direct payments when sales from other sources, such as goods and services, are determined. As Apple only collects a fee from the billings connected with digital goods, it is only third party developers and companies of all sizes that earn more than 85% of the $519 billion.
Tim Cook, Apple’s CEO, said: “The App Store provides innovators and dreamers with the chance to get their ideas to life and users will find safe and confidential tools for getting better their lives.” The App Store is an intimidating, unresolved world that helps consumers to respond rapidly and to have healthy options for enterprise, well-being, schooling, and work. We are committed to further helping and sustaining the global community in the App Store – from single-developer businesses in almost all countries to companies employing thousands of employees – as it continues to encourage innovation, create jobs, and promote future economic growth.
The report showed that purchases of physical products and services account for the largest proportion, $413 billion, of the $519 billion the App Store’s ecosystem funded in 2019. In this segment, the overwhelming majority of revenues have been produced by m-commerce devices, with retail production at 268 billion dollars. Retail applications include brick and mortar retailers such as Target and Best Buy, online and electronic marketplaces that offer natural goods such as Etsy, but not food procurement, which is a group of its own.
Sales of physical products and services are among the main outlets of m-commerce data. A total of $57 billion were spent on travel apps, including Expedia and United. The $40 billion in revenue and food services, including DoorDash and Grubhub, comprised the ride-hailing software, which comprised $31 billion.
Online revenues and billings in merchandise and services represented $61 billion for music and video sharing software, wellness devices, education and audiobooks, news and magazines, as well as dating, for example. Games, the most downloaded type of application in 2019, was the largest billing and sales generator within this category. Official 2019 games included the “Mario Kart Ride,” which became 2019’s most downloaded title, and the Independent developer’s “Sky: Children of the Sun” title that earned Apple iPhone Game of the Year in 2019.
Through-app advertisements produced $45 billion, 44 percent of which were sports. Often free to download and use non-gaming apps that create significant in-app advertising sales, like Twitter and Pinterest. But others also offer in-app purchases to access content, such as the New York Times and MLB.com.
As the social protocols for distancing people from COVID-19 change their way of life and spend more time on their mobile devices. Social applications allow friends and family to stay linked, and applications for schooling and company collaboration enable students and staff to adjust themselves to remote working environments. At the same time as apps for companies that face restrictions or that require personal interactions, food, and food delivery apps have benefited from an increase in consumer demand. Many brick and mortar businesses, including those who would otherwise have had to close without this new digital network, have switched to the mobile sector.
The App Store is the safest and most vibrant app market in the world, now home to nearly 2 million apps, and visited around 175 countries by half a billion people a week. It helps designers, dreamers, and students of all ages and backgrounds link to the tools and information they need to build a better and better world for their future.