Global spending on mobile applications is rising .. “Apple” makes it difficult to compete

In the face of antitrust allegations and the ire of some app makers, Apple company concessions to app developers on its phones in November 2020 by introducing the App Store Small Business Program, which reduces app store commission from 30 to 15% for developers who earn less than $1 million a year in revenue.

Apple also announced last week that it would allow app makers to inform users of payment methods outside of Apple’s system, including email, which would enable them to get around the App Store commission.

Since the launch of the App Store in 2008, Apple has accounted for 30% of app sales, in-app purchases of digital content and subscriptions made through apps that are compatible with an operating system.

App analytics firm SensorTower estimates that App Store revenue was more than $40 billion in the first half of 2021.

Assuming most of that total qualifies for Apple’s commission, that would amount to at least $10 billion in revenue in just six months, which would be a new record.

An expert witness summoned in the company’s case against Fortnite maker Epic Games estimated that Apple earned $22 billion in App Store commissions last year at a staggering 80% profit margin, which Apple disputed, arguing that its real profit margins are much lower.

According to SensorTower analysis, App Store sales grew to $41.5 billion during the first half of 2021 versus revenue of $34 billion in the same period last year, and $26.3 billion during the first half of 2019.

This comes in comparison with consumer spending of about $23.4 billion on Google’s Android app store during the first half of 2021, which also grew from levels of $18 billion during the first half of last year, and $14.3 billion in the same period of 2018. 2019.


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