TechnologyApple: the App Store and its ecosystem generated $1.123 billion in 2022

Apple: the App Store and its ecosystem generated $1.123 billion in 2022

Analysis Group has just republished its annual study on the economic weight of Apple’s App Store ecosystem. The figures put forward are dizzying and tend as much to prove the positive weight of the download kiosk as an economic facilitator as the fact that Apple is not the one who derives the most benefit from it.

A trillion dollars… and a little more. According to one “independent study”established by the firm Analysis Group on behalf of Apple, its App Store and the entire adjoining ecosystem would have generated some 1,123 billion dollars in revenue worldwide last year, an increase of more than 29% compared to to the previous year… The opportunity to recall a figure announced by Apple a few weeks ago, more than 4.8 million jobs in the United States and Europe would be based on the App Store and its ecosystem …

Two small details…

Let’s quickly clear up two points. The first, Apple does not pocket this amount – “only” 10%, or still around 112 billion dollars. Indeed, more than 90% of these revenues go to the developers alone (or, at the very least, to the services related to the app), “without any commission paid to Apple”specifies the study, because sales and invoicing take place outside the App Store, therefore outside of Apple’s control.

Moreover, second point, these more than a trillion dollars do not come only from your compulsive integrated purchases in candy Crush, rest assured. Analysis Group economists sift through more than 80 criteria and data sources to take into account the wider economic impact of the App Store, and the entire economy it carries. The economists of the analysis firm explain here that the App Store is a “facilitator” of sales and income. This takes into account the sales of physical or digital goods as well as trips, rides in VTC or taxi, advertisements in apps, etc.

Apps rooted in the physical economy

According to economists from the Analysis Group, “App Store developers reportedly generated $910 billion” for the only “sale of physical goods and services. » To which should be added 109 billion for advertising in applications and 104 billion for digital goods and services.

It is interesting to note that these three categories are on the rise, but not in the same proportions. Thus digital goods and services, more directly linked to applications, only recorded an increase of just under 2% – a figure which is explained by the fact that during the pandemic users consumed many more digital goods. . While physical goods and services grew by more than 34%, with a strong increase in travel offers, personal transport and online food shopping (3.5 times more than in 2019). The same trend is observed for the jackpot from food delivery, which has multiplied by 2.3 since 2019. Revenue from advertising in apps has increased by nearly 24%.

There are also some regional disparities. In 2022, the United States accounted for $41 billion in revenue from digital goods and services, far ahead of China, $21 billion, and Europe, $11 billion. On the other hand, for physical goods and services, China largely dominates, with 523 billion dollars, against 182 for the United States and 93 for Europe.

If we go into a little more detail, we see that revenues from food shopping deliveries are mainly on the rise in the United States and China, while they are stagnating or falling a little in Europe. Europe where revenue from meal delivery has doubled since 2019, for example, but with zero growth between 2021 and 2022 – in other words, the habits born of covid persist but do not necessarily convert new users and do not therefore generate no new income. Revenues from the Old Continent are mainly driven by travel services, with a 79% increase in revenues between 2021 and 2022.

Interestingly, we note that in Europe, the United Kingdom is the largest provider of income, with 48 billion dollars, far ahead of Germany, and its 19 billion, and France, a good third with 12 billion dollar…

Fifteen years, and some progress…

Finally, the study takes a brief look at the fifteen years of existence of the App Store, which was launched in July 2008. Note the more than 370 billion downloads since the launch… ‘Apple now has 1.8 million applications, 123 times more than at the end of 2008.

It goes without saying that this study, the accuracy of which we will not allow ourselves to be called into question, has an obvious communication purpose: to demonstrate that the App Store does not only benefit Apple, and that the ecosystem that has been created around this very controlled platform is virtuous and beneficial to many people. A few days before the opening of WWDC, and perhaps the first announcements of the changes to iOS and the App Store under the European DSAs and DMAs, this avalanche of numbers is not innocent, but does not none the less enlightening.

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