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Apple lifts the lid on how its App Store generated $500B in 2019

Apple’s App Store generated $519 billion in billings and sales globally in 2019, the tech company revealed on Monday, June 15.

The data comes via independent economists at Analysis Group, which drilled down into the numbers to give us a rare look at how App Store customers spend their cash.

Sales of digital goods and services from which Apple takes a 30% cut amounted to $61 billion of the total. The category includes apps for games, music, video streaming, fitness, education, ebooks, audiobooks, news and magazines, and dating services, among others. Games were the largest generator of billings and sales among these, with Mario Kart Tour the most downloaded game of 2019.

Physical goods and services generated $413 billion in revenue. Of this:
– $268 billion came from retail apps such as Target, Best Buy, and Etsy
– $57 billion came from travel apps such as Expedia and United
– $40 billion came from ridesharing apps such as Uber and Lyft
– $31 billion came from meal delivery apps such as DoorDash and Grubhub

In-app ads generated $45 billion in 2019.

Apple also noted that since the App Store launched in 2008, developers have earned more than $155 billion from app and in-app purchases, with a quarter of that amount generated in 2019.

The Apple-commissioned study gives the company a chance to blow its own trumpet, hailing the App Store as an important revenue generator for businesses big and small around the world. It’s the kind of data that Apple would be keen for regulators to pore over, too, as the tech giant works to avoid App Store interference as it faces accusations both home and abroad of anti-competitive practices.

Commenting on the data, Apple CEO Tim Cook said, “In a challenging and unsettled time, the App Store provides enduring opportunities for entrepreneurship, health and well-being, education, and job creation, helping people adapt quickly to a changing world.”

Cook added that his company is “committed to doing even more to support and nurture the global App Store community — from one-developer shops in nearly every country to businesses that employ thousands of workers — as it continues to foster innovation, create jobs, and propel economic growth for the future.”

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Trevor Mogg
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