9 votes

App Store developers generated $1.1 trillion in total billings and sales in the App Store ecosystem in 2022

Posted by feigneddork
Tags: apple.app store, apps, business, developers.software, sales, year in review.2022, author.alfonso maruccia, source.techspot
https://www.techspot.com/news/98905-apple-app-store-11-trillion-business.html

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Title
Apple says the App Store is a $1.1 trillion business
Authors
Alfonso Maruccia
Published
Jun 1 2023
Word count
445 words

8 comments

  1. [8]
    skybrian
    Link
    [...] So they're including things like rides booked through Uber using an iPhone in this analysis. I guess "travel sales" would be things like buying plane tickets, but I don't know what apps are...

    more than 90% of the billings and sales apparently goes to developers alone – with no commissions paid to Apple.

    [...]

    Analysis' study also highlights the most popular (and growing) app categories, with a "significant" increase for travel sales (84%) and ride-hailing apps (45%).

    So they're including things like rides booked through Uber using an iPhone in this analysis. I guess "travel sales" would be things like buying plane tickets, but I don't know what apps are popular for that.

    3 votes
    1. [7]
      tinselsnips
      Link Parent
      So the app store isn't a $1.1T business, it's a platform through which $1.1T of business has been conducted. That's... not the same thing. By that logic, Cisco should be able to claim they're a...

      So the app store isn't a $1.1T business, it's a platform through which $1.1T of business has been conducted. That's... not the same thing.

      By that logic, Cisco should be able to claim they're a $26 trillion company.

      4 votes
      1. skybrian
        Link Parent
        I think it's this headline being a bit misleading. The press release puts it like this: This is similar to what happens with reporting on scientific papers.

        I think it's this headline being a bit misleading. The press release puts it like this:

        App Store developers generated $1.1 trillion in total billings and sales in the App Store ecosystem in 2022

        This is similar to what happens with reporting on scientific papers.

        6 votes
      2. [5]
        nrktkt
        Link Parent
        Apple collects a portion of all business done on their mobile platform. So every time someone hails a ride or books a flight, they get a cut

        Apple collects a portion of all business done on their mobile platform. So every time someone hails a ride or books a flight, they get a cut

        1. [4]
          artvandelay
          Link Parent
          I thought there were exceptions for goods like flights, books, food, etc.

          I thought there were exceptions for goods like flights, books, food, etc.

          2 votes
          1. [3]
            nrktkt
            Link Parent
            I believe that's right, my examples were bad. I'm not sure if they have different rates or total exceptions, but of course low margin physical things can't handle the same fees as digital

            I believe that's right, my examples were bad.
            I'm not sure if they have different rates or total exceptions, but of course low margin physical things can't handle the same fees as digital

            2 votes
            1. tinselsnips
              Link Parent
              The article read like are counting this though, which was the disingenuous part: They're counting externally-processed sales as part of these numbers. As @skybrian pointed out though, this is a...

              The article read like are counting this though, which was the disingenuous part:

              more than 90% of the billings and sales apparently goes to developers alone – with no commissions paid to Apple.

              the numbers provided in the Analysis study say that $910 billion of the whole $1.1 trillion generated by Apple's ecosystem come from sales of physical goods and services, $109 billion from in-app advertising, and $104 billion from digital goods and services.

              They're counting externally-processed sales as part of these numbers. As @skybrian pointed out though, this is a failure of the article, not the report; the actual Apple report uses more correct phrasing:

              App Store developers generated $1.1 trillion in total billings and sales in the App Store ecosystem in 2022

              2 votes
            2. skybrian
              Link Parent
              Looks like physical goods and services are exempt from Apple’s in-app purchase fees because in-app purchases aren’t allowed and they would have to do payments in some other way.

              Looks like physical goods and services are exempt from Apple’s in-app purchase fees because in-app purchases aren’t allowed and they would have to do payments in some other way.

              1 vote