JOIN USApple App Store facilitated $643 billion in billings and sales in 2020
Since day one of the Apple App Store in July 2008, it has not only offered a secure ecosystem for its consumers to enhance the iPhone user experience, it has empowered small firms and start-ups to thrive and run a profitable business with their apps.
In the latest economic report -- Global Perspective on the Apple App Store Ecosystem, the company's virtual store, which houses close to 2 million apps has facilitated a whopping $643 billion (approx. Rs 46.9 lakh crore) worth of in-app billings and sale in 2020, that's 24 per cent more than the previous year ($519 billion around 37.9 lakh crore).
The report added that more than one in four small developers who sell digital goods and services on the App Store has grown their earnings by an average of at least 25 per cent each year for the past five years. Nearly 80 per cent of small developers on the App Store are active across multiple countries’ storefronts — and on average, these developers see earnings from users in more than 40 countries.
It should be noted that Apple earlier this year in January reduced App Store commission from 30 per cent to 15 per cent for small app developing firms, particularly those with fewer than one million downloads and earn less than $1 million in revenue across all their apps in a given year.
"Developers on the App Store prove every day that there is no more innovative, resilient, or dynamic marketplace on earth than the app economy. “The apps we’ve relied on through the pandemic have been life-changing in so many ways — from groceries delivered to our homes, to teaching 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 an opportunity, and it’s untold innovation that will power global economies for many years to come," said Tim Cook, Apple’s CEO.
The report also said the Apple App Store helps small developers offer services not just in local regions, but also give global access to close 175 countries.
Also, App Store helps developers focus on their apps and their customers in terms of facilitating secure, international transactions — including support for 40 languages, almost 200 local payment methods, and 45 local currencies.
An Indian app developer firm KidloLand also found a special mention in the report. The company was started by brothers Aditya and Nishant Mohatta in India in 2012. Since then, it has registered more than 60 lakh downloads and the team has grown to 40 members.
“To know that children in 174 countries have played our songs more than half a billion times — it means a lot to us, especially as fathers, " said Aditya Mohatta.
“This growth has meant we can create stable jobs for people in our communities. Some of our team members purchased their first homes — that is something we are especially proud of, because in India, buying a home is considered a very big step in one’s life. And during the pandemic, we were able to donate food and medical supplies, including oxygen concentrators, for those who were in dire need,” Mohatta added.
Apple noted that 90 per cent of the business and sale happened outside the latter's paywall ambit.
The report comes close on the heels of Apple's ongoing bitter legal dispute with Epic Games.
In August, Fortnite, one of the online gaming divisions of Epic Games announced 'Epic direct payment', an in-app feature for all transactions on PCs and mobiles. This apparently violated guidelines set by Apple and Google on their respective App Stores.
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