There’s no way Steve Jobs would have believed that the device he described as An iPod, a phone, an internet mobile communicator all in one in January 2007 would create an ecosystem generating over one trillion dollars. It’s hard to fathom.
Thanks to a report by “The Analysis Group” we have an insight into just how that Trillion dollars comes about.
What we’re talking about here are billings and sales that come through apps developed for iPhone, but we’re not just talking about in-app purchases. These are subscriptions, the food you buy from delivery apps and so much more.
Staggeringly, the revenue from those things has grown 29 percent year on year! The year before it grew 27% and before that 27% also. This is a booming economy.
Apple CEO Tim Cook says “We’ve never been more hopeful about — or more inspired by — the incredible community of developers around the world,”
“As this report shows, the App Store is a vibrant, innovative marketplace where opportunity thrives, and we’re as committed as ever to investing in developers’ success and the app economy’s future.”
And it’s not just big business. Apple’s smaller developers are seeing great success, outpacing the grown of larger developers with revenue growth of 71 percent between 2020 and 2022.
Australia does ok, with $14 billion in revenue generated by Aussie developers, but that’s a drop in the ocean compared to China.
Check out this table from the report.
China’s contribution is 50% of the total, with 36% of the total $1.1 Trillion being spent on “General Retail” within China.
I’ve looked through the 32 page report, and don’t see a clear definition of General Retail – perhaps China is doing something far more with “shopping” than we do. Regardless, researchers are crediting the App Store with this revenue.
Even for Australia, $14 billion in revenue, from sales generated via apps and the iPhone is something staggering.
At a time when Apple continues to be bombarded with criticism over it’s 30% commission structure, perhaps the most remarkable stat here is that of the $1,123 TRILLION in revenue, more than 90% of that went soley to developers and business without any commission being paid to Apple.
