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Apple today released a new press release underscoring the economic impact of the App Store. Ahead of the World Wide Developers Conference, which begins next week, Apple touts that total developer revenue in the App Store ecosystem grew by 24% to $643 billion in 2020.
In Apple's press release cites a new study by Analysis Group, which the company co-sponsored. The study states that the number of "small developers" worldwide has increased by 40% since 2015 and now accounts for more than 90% of total developers. The "small developer" category is defined as those with fewer than 1 million downloads and less than $1 million in revenue across all their apps in a given period.
App Store: Annual revenue growth of 25%
The latter qualification also makes these developers eligible for Apple's App Store Small Business Program, which reduces the App Store commission from $30% to $15%. The study found that one in four of these small developers saw annual revenue growth of $25%:
One in four small developers selling digital goods and services on the App Store have grown their revenue by an average of at least 25 percent per year over the past five years. Nearly 80 percent of small developers on the App Store operate across multiple country storefronts—and on average, developers selling digital goods and services on the App Store across multiple storefronts have revenue from users in more than 40 countries.
In the press release, Apple also highlights the stories of a handful of developers, including Adam Debreczeni, Pedro Wunderlich, Andres Canella, Goran Ivašić, and others. Apple explains how the App Store has helped developers reach new customers amid the COVID-19 pandemic, how its APIs help developers improve their apps, and more. Apple CEO Tim Cook commented:
Tim Cook: “It’s jobs, it’s opportunities & more”
Developers on the App Store prove every day that there is no more innovative, resilient, and dynamic marketplace in the world than the app economy. The apps we've relied on during the pandemic have changed our lives in so many ways—from groceries delivered to our homes, to educational tools for parents and educators, to an imaginative and ever-expanding universe of games and entertainment. The result isn't just incredible apps for users: it's jobs, it's opportunities, and it's untold innovations that will drive the global economy for years to come.
This is the second year in a row that Apple has released a study from Analysis Group in a press release before WWDC. If you want to read Apple’s full post about this study, you can find it here here. (Image: Apple)
