The company announced Thursday that Apple (AAPL) App Store promoted nearly $1.3 trillion in sales and bills in 2024.
The discovery is part of a report commissioned by Apple and conducted by Jessica Burley of Analysis Group and Andrey Fradkin, a professor at Boston University, which shows that in the past five years, App Store sales have exploded, climbing from $514 billion in 2019 to $12.29 last year.
About 78% of sales, worth $1.01 trillion, is through the sale of physical goods and services, including general retail, travel, food delivery and ride-hailing orgy. Another 10% comes from digital goods and services, such as in-game purchases. The last 12% come from in-app advertising revenue.
The United States accounts for the majority of sales and bills related to in-app purchases and in-app advertising, respectively, at $53 billion and $75 billion, respectively. So far, China accounts for the largest market for physical goods and services, reaching $484 billion compared with the US $277 billion.
The study notes that Apple collected 10% of $1.3 trillion through commissions. Apple collects a 30% commission to sell digital goods and services purchased through the App Store. As part of Apple's Small Business Program, developers who could pay up to $1 million last year reduced commissions by 15%.
For subscriptions, the company collects an initial 30% commission, which then drops to 15% per year each year.
Governments around the world are reviewing Apple's app store practices. South Korea requires Apple and rival Google to offer alternative in-app payment methods in the country, while the EU and Japan require companies to enable users to access third-party app stores.
In the U.S., Apple is facing face to face with “Fortnite” developer Epic Games, part of the duo’s ongoing antitrust lawsuit. The core of the question is whether Epic should be able to circumvent Apple's in-app payment system, thus avoiding Apple's App Store commissions.
EPIC initially accused Apple of violating antitrust laws, requiring developers to use the company's in-app payment system. U.S. District Judge Yvonne Gonzalez Rogers discovered that Apple did not monopolize the "digital mobile game trading" market, but did violate California's antitrust laws through anti-enterprise regulations in its App Store rules.
As part of the ruling, Apple should allow developers to provide payment methods outside the app store. However, Apple does charge a 27% commission on these payments.