Apple said that its App Store ecosystem supported USD 519 billion in billings and sales last year. The figures come from a study conducted by independent economists at Analysis Group. Of the total, 85 percent went to third-party developers and businesses, with no commission for Apple. The highest value categories were mobile commerce (m-commerce) app, digital goods and services apps, and in-app advertising.
Mobile commerce contributes most to sales
The largest share of the total, or USD 413 million, came from the sale of physical goods and services. Within that category, m-commerce apps generated most sales, and within that, retail was the largest, at USD 268 billion. Retail apps include those that digitally represent brick-and-mortar stores such as Target and Best Buy, as well as virtual marketplaces that sell physical goods, such as Etsy, but do not include grocery delivery, which forms its own category.
Other types of m-commerce apps were among the largest sources of sales from physical goods and services. Travel apps, including Expedia and United, accounted for USD 57 billion. Ride-hailing apps, including Uber and Lyft, made up USD 40 billion in sales, and food delivery apps, including DoorDash and Grubhub, made up USD 31 billion.
Digital goods and services, including games, brought in USD 61 mln
Billings and sales from digital goods and services came out at USD 61 billion. The category includes apps for music and video streaming, fitness, education, ebooks and audiobooks, news and magazines, and dating services, among others.
Games, the type of app most downloaded in 2019, was the largest generator of billings and sales within the category. Notable games for last year included “Mario Kart Tour,” the most downloaded game of 2019, and “Sky: Children of the Light” from developer thatgamecompany, which won Apple’s 2019 iPhone Game of the Year.
Games make up almost half of advertising sales
In-app advertising sales accounted for USD 45 billion, with almost half (44%) coming from games. Non-gaming apps that generate substantial in-app advertising sales are often free to download and use, such as Twitter and Pinterest, though others also offer in-app purchases to access content, such as The New York Times and MLB.com.
Apple launched its App Store in 2008. The ecosystems is home now to almost 2 million apps and visited by half a billion people each week across 175 countries.
