Despite numerous antitrust lawsuits and stricter regulations in certain markets, Apple today reported new figures pointing to record App Store growth in 2021. The company said in a press release that it has now paid out more than $260 billion to app developers since the App was launched. Store was first launched in 2008, a number exceeding the $200 billion Apple reported in late 2020 — meaning Apple paid a total of at least $60 billion to developers in 2021 alone.
That number is a lot larger than the payouts reported in previous years.
In comparison, Apple had paid developers a total of $155 billion by the end of 2019 since the App Store’s debut. The year before, it had said the amount was about $120 billion. Reading between the lines means that payouts to developers increased by $35 million between 2018 and 2019 and increased by another $45 billion from 2019 to 2020.
Unfortunately, the payout figure Apple shared no longer helps shed light on the state of the App Store’s overall economy, as the percentages paid by individual apps will vary.
In more recent years, Apple has modified its commission structure to mitigate its own cuts in developer revenues amid increased regulatory oversight of its App Store practices, antitrust complaints and lawsuits — including the ongoing case with Epic Games, against which appeal is filed.
With the launch of Apple’s Small Business Program, announced in November 2020, the company cut the commission from 30% to 15% on eligible apps (which earned up to $1 million per year). In 2021, Apple also dropped commissions on apps from select news publishers if they chose to participate in the Apple News Partner Program. Apple didn’t say how many developers and publishers actually took advantage of these capabilities, only that a “vast majority” of apps would qualify for the small business discount.
In announcing a new App Store record, Apple appears to be walking a fine line between its usual self-promotion and not drawing too much attention to its outrageous profits. The company noted that App Store customers spent “more than ever” between Christmas Eve and New Year’s Eve in 2021, delivering double-digit growth from last year.
However, Apple didn’t provide hard numbers to document this milestone as it did last year, when it noted that consumers spent $1.8 billion on digital goods and services in the week between Christmas Eve and New Year’s Eve 2020, driven largely by spending on games.
Today’s numbers follow what was otherwise a transition year for the App Store.
The company has seen more pushback from developers about App Store scams, which became a subject for a congressional hearing, as well as ongoing issues with the App Review process. Apple was also ordered this year to make changes to the App Store that would have enabled links to third-party payment options as a result of the Epic lawsuit, but was later granted a last-minute stay from the court order while the case is on appeal. is going. However, Apple has had to slacken its grip on the App Store in other markets, such as Japan and South Korea, where regulators pushed Apple to allow links to external websites and took other steps to curb its commissions.
In addition to the App Store numbers, Apple also offered updates on its other services, including Apple Arcade, Apple Fitness+, Apple Music, Apple TV+, Apple News+, Apple Podcasts, Apple Books, Apple Pay and Wallet, Apple Maps and iCloud+.
Note that Arcade now includes more than 200 games, Apple Music now has more than 90 million songs in lossless audio, Apple TV+ has won 190 industry awards, Apple Fitness+ has grown to nearly 2,000 sessions of workout content, Apple News remains the No. 1 news app available everywhere, Apple Pay has reached nearly 60 countries and regions, and customers used 30 million NFC tickets in Apple Wallet by 2021.
This post Apple paid about $60 billion to App Store developers in 2021 TechCrunch
was original published at “https://techcrunch.com/2022/01/10/apple-paid-out-around-60-billion-to-app-store-developers-in-2021/”