Ahead of its much-anticipated Worldwide Developers Conference on June 9, Apple announced that its App Store generated approximately $1.3 trillion in developer billings and sales during 2024. Notably, the company pointed out that nearly 90% of this economic activity took place without requiring developers to pay Apple any commission.
According to a recent study funded by Apple, digital goods and services accounted for $131 billion of the year’s revenues, driven primarily by mobile games, photo and video editing applications, and enterprise-focused productivity tools. Physical goods and services dominated, however, surpassing $1 trillion thanks largely to rising demand for online food delivery, curbside pickup, and grocery apps. Additionally, in-app advertising revenues across the platform amounted to $150 billion.
Apple highlighted that spending related to digital and physical products and services, combined with in-app advertising revenue, has more than doubled since 2019. The company particularly emphasized the rapid growth within physical goods and services, which saw revenues increase by more than 160% in that period.
This new report, produced by economists Professor Andrey Fradkin from Boston University’s Questrom School of Business and Dr. Jessica Burley from Analysis Group, also underscores regional growth trends. It reveals that the total billings and sales resulting from the App Store more than doubled between 2019 and 2024 in key markets such as the United States, China, and Europe. Mobile payments alone grew by over seven times in the U.S., driven by widespread consumer adoption.
Apple’s update underscores its broader narrative that the App Store serves as a significant platform for economic opportunity beyond simply selling digital applications. The company reiterated its commitment to investing in tools and infrastructure to support the global developer community, highlighting detailed analytics, secure payment processing, anti-fraud measures, developer support services, and a robust distribution network that regularly attracts approximately 813 million weekly visitors worldwide.
However, the company’s portrayal sidesteps some of the criticisms about its App Store policies and the restrictions on alternative distribution methods. Recently, Apple encountered setbacks due to regulatory and legal decisions, notably the court ruling in favor of Epic Games in the United States. This ruling required Apple to permit developers to direct customers to their own external payment solutions, avoiding Apple’s platform fees entirely. In Europe, Apple continues to contest the European Union’s proposed Digital Markets Act (DMA), aimed at empowering developers to notify consumers of alternative purchasing options.
While Apple continues emphasizing the App Store’s role in supporting millions of developers worldwide, these regulatory shifts mark an evolving landscape for the company, challenging its control over app monetization and distribution channels.
