Apple’s App Store earned $64 billion in revenue in 2020, a 28 percent jump from the expected $50 billion it made in 2019. This describes a fair amount of increase for the App Store since the expected progress between 2018 & 2019 was only 3.1 percent. According to CNBC’s analysis.
It’s difficult to determine the spike’s specific reason for growth, but it possibly had something to do with the COVID-19 pandemic. Many bought quite a few more games in 2020 than, as well as subscriptions to fitness and productivity apps, to regain some control of life during the pandemic.
When Apple reports on its financials, it lumps the money it earns from the App Store with its services revenue, which is by considerably its fastest-growing category.
The company holds a 30 percent cut of most of the money coming into the App Store, which represents billions of dollars of revenue while there are signs and exceptions. Despite recent pushback from developers like Hey.com and even authorized challenges from Epic, Apple typically guards its take carefully.
Its grip has newly freed just a little, though, as Apple now only gets a 15 percent cut from developers who perform under $1 million a year from the App Store.
That isn’t likely to become a large change on the revenue estimates, as analysts have approximated that the top 2 percent of App Store developers make 95 percent of the revenue.
Every year, Apple describes how much money it has paid out to developers since 2008.
CNBC used that to calculate the App Store revenue number by subtracting last year’s number from this year’s, and then it accounts for Apple’s 30 percent cut.
While the numbers may be a few rough, Apple doesn’t self-report them, so all we can do is get close. Although two things are difficult to argue: the App Store’s revenue increased by quite a bit this year, and it made in a lot of money for both developers and Apple.