TLDR;
- Apple’s App Store generated $1.3 trillion in sales in 2024, with physical goods and services leading growth.
- Over 90% of App Store sales did not incur Apple commissions, supporting a broad range of developers.
- China dominated physical goods sales while the U.S. led digital goods and advertising revenue.
- Apple faces regulatory and legal challenges, including demands for alternative payment methods worldwide.
Apple’s App Store has reached an unprecedented milestone, facilitating nearly $1.3 trillion in sales and billings in 2024, a new report reveals.
Apple’s Growth Driven by Physical Goods and Services
Apple’s CEO, Tim Cook, described the achievement as a testament to how developers “are enriching people’s lives with app and game experiences, while creating opportunity and driving new innovations.”
The report, published earlier this week highlights that the bulk of the App Store’s sales come from physical goods and services, accounting for approximately $1.01 trillion of the total. These transactions cover a wide array of categories including retail, travel, food delivery, and ride-hailing. This emphasizes the App Store’s evolution into a comprehensive marketplace extending far beyond digital content.
Meanwhile, digital goods and services such as in-app purchases, especially for games and creative apps, totaled $131 billion. In-app advertising revenue added another $150 billion, supporting many apps to remain free or affordable for users.
Global Reach and Regional Highlights
Apple’s study reveals distinct trends in different regions. China emerged as the leading market for physical goods and services with $484 billion in sales, outpacing the U.S., which generated $277 billion in the same category. The United States, however, led in digital goods and in-app advertising, bringing in $53 billion and $75 billion respectively. The report also notes significant growth over the past five years, with billings doubling or more in major regions including the U.S., China, and Europe. Mobile payments have grown seven-fold in the U.S., and Europe has seen food delivery spending more than triple.
Apple’s Support for Developers
According to Apple’s official statement, “For more than 90 percent of the billings and sales facilitated by the App Store ecosystem, developers did not pay any commission to Apple.” This highlights Apple’s efforts to support small developers through programs like its Small Business Program, which reduces commissions to 15 percent for developers earning under $1 million annually. For other digital goods and services, Apple collects a 30 percent commission initially, dropping to 15 percent for subscriptions after the first year.
Apple invests heavily in developer tools and resources to foster innovation. The App Store supports local currencies and tax handling in nearly 200 regions and provides over 40 payment options to ease commerce globally. The company also offers tools such as Xcode and TestFlight to help developers build, test, and refine their apps.
“It’s incredible to see so many developers design great apps, build successful businesses, and reach Apple users around the world.” Tim Cook emphasized.
Legal Challenges and Future Outlook
Despite the App Store’s success, Apple faces mounting regulatory pressure around the globe. Laws in South Korea and the European Union now require Apple to allow alternative payment methods outside its system. In the United States, Apple is embroiled in a legal battle with Epic Games over its in-app payment policies.
While the court ruled Apple does not hold a monopoly over digital gaming transactions, it found some of Apple’s anti-steering provisions unlawful. The judge ordered Apple to remove a 27 percent commission on payments made outside the App Store, reflecting ongoing challenges for Apple’s business model.
Looking forward, the report suggests that the App Store’s robust growth could help ease concerns about Apple’s services business, which has become an increasingly vital revenue source alongside hardware sales. With more than 813 million weekly visitors worldwide, Apple’s platform continues to be a global launchpad for developers and a key driver of innovation, especially as emerging technologies like AI reshape app experiences.
