Apple’s App Store ‘Facilitates More Than $500bn’ In Trade Worldwide

Apple says its App Store facilitated more than half a trillion dollars (£400bn) in trade worldwide last year.

The company said it did not take a commission from more than 85 percent of those transactions.

Apple released the figures, based on a study it commissioned from Analysis Group, ahead of its World Wide Developers Conference (WWDC), which begins on 22 June.

The findings appear as Apple and other major tech companies are under pressure from competition authorities in the US and Europe.

Image credit: Apple

Digital economy

Apple chief executive Tim Cook is likely to participate in US congressional antitrust hearings set to begin in July, along with the chief executives of Amazon, Facebook and Google.

Many developers are also unhappy with the 30 percent commission Apple exacts from digital purchases, amounting to $61bn in 2019.

Digital goods and services include in-app purchases, app sales and in-app advertising.

The study, however, highlights the much larger proportion of physical goods and services whose sale was facilitated by the App Store in one way or another – and from which Apple does not take a commission.

Retail apps from companies such as Amazon and Best Buy amounted to $298bn last year, while travel sales from United, Expedia, British Airways and other companies reached $57bn.

Ride-hailing apps sold $40bn in services and food delivery app companies registered $31bn in sales.

Subscriptions

Geographically, the largest single category of sales was physical goods and services in China, at $225bn, followed by the US, at $93bn.

Worldwide, sales of physical goods and services amounted to $413bn.

Other categories include subscriptions to media apps such as the Times newspaper or Netflix and subscriptions to work apps such as Zoom or Slack.

The App Store facilitated a total of $519bn in estimated billings and sales in 2019, which Apple said it believes is a conservative estimate.

The findings reach across the iOS, macOS, Watch and Apple TV platforms, and exclude Windows or Android versions of the same apps.

“We’re committed to doing even more to support and nurture the global App Store community,” said Apple chief executive Tim Cook.

Apple said in a statement that it welcomes regulatory scrutiny of its App Store.

Matthew Broersma

Matt Broersma is a long standing tech freelance, who has worked for Ziff-Davis, ZDnet and other leading publications

Recent Posts

Boeing Starliner Launches Successfully, On Route To International Space Station

Boeing's crewless space taxi, CST-100 Starliner, one step closer to NASA certification, as it enters…

1 day ago

Apple Accused By Union Of Staff Law Violations At NY Store

Staff at Apple's World Trade Centre store in New York are allegedly being questioned and…

2 days ago

Canada To Join Five Eyes 5G Ban On Huawei/ZTE

Making it official. Canada is to turn its unofficial ban on 5G kit from Huawei…

2 days ago

Twitter To Hide Tweets That Share False Information During A Crisis

Potentially risking Elon's wrath over free speech, Twitter says it will hide tweets spreading misinformation…

2 days ago

Boeing Starliner Test Flight Readied For Tonight

Third time the charm? Main rival to SpaceX's Dragon capsule, the embattled Boeing Starliner spacecraft,…

2 days ago

September 13 Slated For iPhone 14 Launch – Report

No surprise there. Apple is slated to launch the iPhone 14 on 13 September according…

2 days ago