Apple has revealed that transactions on its App Store reached an impressive $1.1 trillion in 2021, according to a report by Analysis Group, which was undertaken on behalf of the tech giant. The figures represent an increase of 29% compared to the previous year.
Another key finding of the report is that sales and billings on the App Store have surged by 80% since 2019, thanks to the growing popularity of in-app advertising, apps, subscriptions, physical goods and services. Apple has been facing criticism from some quarters for imposing what is seen as excessive control over the App Store, including the imposition of a commission of up to 30% on developers. The new figures from Analysis Group may help to assuage some of these concerns.
Apple emphasised that 90% of the income generated from the App Store in 2020 went to businesses rather than to Apple in the form of commissions. The company's CEO, Tim Cook, said that the App Store was a "vibrant, innovative marketplace where opportunity thrives".
Next week, Cook is expected to unveil a mixed-reality headset that will be compatible with the App Store at Apple's annual Worldwide Developers Conference. The device is a major new product for the company, the first since 2015, and third-party app developers will play a vital role in its success, as they will need to create compelling content for the platform.
The Analysis Group report also found that general retail was the largest driver of App Store commerce in 2020, followed by travel. Food delivery and pick-up apps generated approximately $77 billion in sales, while ride-sharing services generated about $48 billion. The report noted that in-app advertising had increased from $45 billion in 2019 to $109 billion in the intervening year.
It should be noted that Apple’s charges a 30% commission on digital goods sold via apps but not on physical goods and services.