App Store developers rake in astonishing $1.1 trillion in 2022

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Apple said Wednesday that the App Store makes a lot of money for developers.
Apple said Wednesday that the App Store makes a lot of money for developers. And they keep almost all of it.
Photo: Apple

An independent study found App Store developers generated $1.1 trillion in total billings and sales last year as part of the system’s robust year-over-year growth of 29%, Apple said Wednesday.

More than 90% of the money went to developers, without any commission paid to Apple, the company said.

Analysis Group study looks at App Store growth and trends in 2022

At a time when Apple is seemingly always under fire from antitrust regulators, the company cited a new study by Analysis Group economists as a major indicator that the App Store is an “incredible opportunity” for developers worldwide.

“We’ve never been more hopeful about — or more inspired by — the incredible community of developers around the world,” said Apple CEO Tim Cook in a statement. “As this report shows, the App Store is a vibrant, innovative marketplace where opportunity thrives, and we’re as committed as ever to investing in developers’ success and the app economy’s future.”

Apple noted the new study underscores the “strength and resilience of the App Store ecosystem.”

The study, entitled “The Continued Growth and Resilience of Apple’s App Store Ecosystem,” looks at “the key drivers behind the growth in the App Store ecosystem -— including rebounding demand for sectors like travel and ride-hailing, and strong growth in advertising spend in apps like social media and retail apps,” Apple said.

iOS apps are job creators

Apple infographic App Store 2022
App Store developers saw huge sales in 2022.
Photo: Apple

And that’s not all. Cupertino cited proof the iOS app business supports a lot of jobs, too:

Additionally, new analysis from the Progressive Policy Institute found the iOS app economy now supports more than 4.8 million jobs across the United States and Europe, with approximately 2.4 million in each region.

The company said developers have “more ways than ever to monetize their apps.” It cited the Analysis Group study’s estimate that App Store devs pumped out the following:

  • $910 billion in total billings and sales from the sale of physical goods and services
  • $109 billion from in-app advertising
  • $104 billion for digital goods and services

Other findings:

  • Developer billings and sales increased by 27% between 2019 and 2020; 27% between 2020 and 2021; and 29% between 2021 and 2022.
  • Small developers outpaced larger developers by growing their revenue by 71% between 2020 and 2022.
  • Since 2019, U.S. developers’ billings and sales have increased by more than 80%. In Europe, developers’ billings and sales since 2019 saw an above-average increase of 116%.

“The economists at Analysis Group believe growth rates of this kind are positive indicators, consistent with a flourishing marketplace full of dynamism, innovation, and competition,” Apple said.

‘Global distribution platform’

Apple infographic App Store dev sales growth
Certain app categories had the most growth.
Photo: Apple

The company described the App Store as a “global distribution platform” for international business:

  • It supports more than 195 local payment methods and 44 currencies across 175 storefronts.
  • 54% of downloads in 2022 occurred in storefronts outside of developers’ home countries.
  • The App Store attracted over 650 million average weekly visitors worldwide in 2022, according to new data from Apple.
  • Users downloaded and redownloaded apps an average of more than 747 million and 1.5 billion times each week in 2022, respectively.

Fast-growing app categories

The study cites strong growth in particular categories:

  • Travel and ride-hailing. “As restrictions eased in many parts of the world, app categories like travel and ride-hailing saw demand rebound significantly. Travel sales made on iOS apps increased by 84% in 2022, alongside a 45% increase in sales on ride-hailing apps,” Apple said.
  • Food and grocery sales. “Since 2019, iOS app-based food delivery and pickup sales more than doubled, and grocery sales more than tripled.”
  • Enterprise apps. “In 2022, these apps represented one of the fastest-growing digital goods and services categories in Analysis Group’s estimate of billings and sales. The highest growth in digital goods and services was seen in the app-based entertainment category, as notable trends like the creator economy have emerged in recent years, as well as the prominence of apps that support this area.”

App Store Turns 15

Apple infographic Apple Store 15 years old
Developers have made hundreds of billions of dollars since the App Store opened in 2008.
Photo: Apple

Apple also noted the App Store is 15 years old, having launched in 2008.

“By offering a safe and trusted marketplace for users, and powerful tools that help developers make great apps, the App Store has created an incredible economic opportunity for global app creators,” the company said, noting that iOS developers have earned more than $320 billion on the App Store from 2008 to 2022.

It added that the new study found iOS users have downloaded apps more than 370 billion times in that time period. And the App Store has more than 123 times as many apps — nearly 1.8 million — than it did at the end of 2008.

And naturally, Apple touted App Store security, referring to its rigorous App Review process as well as privacy protections.

“In 2022, the App Store blocked more than $2 billion in fraudulent transactions — and rejected 1.7 million app submissions for failing to meet privacy, security, and quality standards,” the company said. “Recent innovations, like App Tracking Transparency and Privacy Nutrition Labels, have empowered users with even more information on how their apps use their data.”

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