There are two major reasons why people chose android devices over iOS devices. First, android devices are cost-effective with more features compare to iOS. Second, most of the App Store applications are not free while the play store provides most of the apps freely.
Every year App Store earns a hefty amount from the apps it provides to the users. 2020 has been a great year for the App Store. As per the CNBC report, App Store has earned a revenue of $64 billion in 2020.
App Store Revenue Statistics
App store hosts different paid apps on its platform. When a user purchases an app or whenever in-app purchases happen, Apple takes 30 percent of that transaction as a commission.
In the year 2019, the App Store had a revenue of $50 billion. Compare to 2019, the App Store saw a 28% growth in revenue. On the other hand, the revenue of $48.5 billion was recorded in 2018. A marginal growth of just 3.1 percent was observed in 2019.
The pandemic year 2020 has brought exponential growth in the revenue of the App Store.
Interestingly, the revenue is never revealed by the company. It is calculated on the basis of the money paid to developers every year. If we add a 30% commission in the money paid to developers, it becomes the total revenue of the App Store in that year.
App Store started its operations in 2008. Till now, they have paid $155 billion+ $45 billion paid in January 2020.
Since revenue is not officially declared by App Store, Revenue numbers can’t be exact. It is a rough estimate. But one thing is quite clear the App Store and developers earned good revenue in the year 2020 compared to past years.
App Store New Policy and Reason behind More Revenue
Starting from this year, the App Store has changed its policy for small developers. Instead of a 30% commission, It will charge a 15% commission from the developers who make less than $1 million.
Once a developer passes the $1 million limit, then from that day onwards, he/she will be charged a 30 percent commission for the remaining year. If a participating developer doesn’t cross $1 million in the whole fiscal year, then again he/she can apply for a 15% percent commission limit in the next fiscal year.
Apple said the new “App Store Small Business Programme” will benefit the vast majority of developers who sell digital goods and services on the store, providing them with a reduced commission on paid apps and in-app purchases”.
The exact reason for the high revenue in 2020 is not known. Experts believe that it is because of online gaming and entertainment apps. People were staying at home in the pandemic. For entertainment purposes, they were buying online games. In-app purchases are a common activity in online gaming.
Users were renting and buying subscriptions to different TV shows and movies to entertain themselves. Digital platforms were in big demand during the worldwide lockdown. Smartphones and tablets are very common digital devices available to everyone.