App Store commerce records 24% increase on year-on-year to $643 bn in 2020

The 2020 results recorded by App Store represent a 24% increase year-over-year; that is a $643 billion in billings and sales throughout the year. A study “A Global Perspective on the Apple App Store Ecosystem” by the Analysis Group indicates that developers grew their businesses in 2020 while reaching new customers. It found that a number of small developers has grown by 40% since 2015.

Tim Cook, Apple CEO, said developers on the App Store prove every day that there is more innovative, resilient or dynamic marketplace on earth than the app economy. “The apps we have relied on through the pandemic have been life-changing in so many ways, from groceries delivered to our homes, to teaching tools for parents and educators, to an imaginative and ever-expanding universe of games and entertainment,” Cook said. “The result isn’t just incredible apps for users – its jobs, its opportunity and its untold innovation that will power global economies for many years to come.”

The report indicates that about one in four small developers grew their earnings by an average of at least 25% each year for the past five years. Nearly 80% have apps across multiple countries’ App Stores. The average developer also has earnings from users in more than 40 countries.

Moreover, the study highlighted that many companies on the App Store have also grown through acquisitions or public offerings. By a conservative estimate, 75-app based companies have either gone public or been acquired in the US and Europe. The companies are also able to reach a wide variety of consumers across the globe. The study stated that the App Store enables businesses to reach customers across 175 countries and regions, with localized storefronts supporting 40 languages, nearly 200 local payment methods and 45 local currencies.

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Apple has highlighted some of its tools and resources for developers. It has to be pointed out that there are more than 250,000 application programming interfaces (APIs) included in its 40 software development kits; more than 10,000 people have graduated from Apple’s Developer Academies, and have launched more than 1,500 apps.

Andres Canella, Founder of Wakeout! has praised Apple’s in-app payment system, calling it an essential service, especially for a small business. “It’s enabled us to expand globally without having to worry about calculating things like local taxes or currency conversion. And using it is so transparent for our customers – we are able to reach everywhere from China to France, you name it,” Canella said. “We get all the benefits of selling globally without ever having to think about it, which is priceless.”