The news: Apple's App Store facilitated an estimated $1.1 trillion in developer billings and sales in 2022, up 29% from the year before, according to an Apple-sponsored study conducted by Analysis Group. The figures include money from in-app advertising, apps and subscriptions, and physical goods and services, with the latter covering mobile commerce like retail, ride-hailing, and travel, along with digital payments conducted through the App Store. What the numbers say: The study emphasizes that more than 90% of billings and sales went to developers alone, with Apple not taking a commission of 15% to 30%. Of the $1.1 trillion total, in-app advertising contributed $109B, digital goods and services accounted for $104B, and $910B came from sales of physical goods and services. Since the App Store launched in 2008, iOS developers have also earned a total of $320B, up from the previously reported $260B in 2021. Apple also highlighted that small developers saw 71% earnings growth between 2020 and 2022, surpassing larger app developers. Quotable: "As this report shows, the App Store is a vibrant, innovative marketplace where opportunity thrives," Chief Executive Officer Tim Cook said in a statement. Why it matters: While the study downplays the notable high costs of doing business on the platform, it does break down the data of Apple's ecosystem and shows the continued growth of the App Store. The figures have grown significantly since the marketplace facilitated $519B in commerce in 2019, with $61B coming from digital goods and services. The study emphasizes the popular and expanding app categories, specifically noting a significant rise in travel sales (84%) and ride-hailing apps (45%).
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