Apple announced its App Store ecosystem created more than half a trillion dollars in revenue in 2019. Independent economists at Analysis Group reported sales generated through apps within the Apple App Store totaled $519 billion globally.
“We consider our estimates to be conservative and a lower bound on how much value was facilitated by the App Store ecosystem in 2019.” The group stated in the report.
The study found the highest revenue-generating category within the app ecosystem is for sales from physical goods which accounts for $413 billion, which is 80% of the total revenue. Mobile-commerce apps generated the most income, and within that category, retail apps from brick and mortar stores (think Target or Best Buy) and online retail (like Etsy) pulled in $268 billion. Other services within the m-commerce category include travel apps which accounted for $57 billion, ride-hailing apps that contributed $40 billion in sales, and food delivery apps, including DoorDash and Grubhub, made up $31 billion.
The next highest-earning category within the Apple App Store ecosystem was digital goods and services which generated $61 billion. At the top of this category is Games like “Mario Kart Tour,” which was the most downloaded game of 2019. It also includes apps for music and video streaming, fitness, education, ebooks and audiobooks, news and magazines, and dating services, among others.
Since launching in 2008, the Apple App Store was a first of its kind and a simple way for commerce businesses to market and distribute their apps on a global scale. Now, the App Store is basically second nature to the average consumer and has facilitated hundreds of billions of app downloads over its lifespan.
“The App Store is a place where innovators and dreamers can bring their ideas to life, and users can find safe and trusted tools to make their lives better,” said Tim Cook, Apple’s CEO. “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. We’re 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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Source: Cord Cutters News