Australia markets closed

    -95.30 (-1.29%)

    -0.0045 (-0.69%)
  • ASX 200

    -98.10 (-1.37%)
  • OIL

    -0.66 (-0.74%)
  • GOLD

    -26.30 (-1.34%)
  • Bitcoin AUD

    -593.12 (-1.40%)
  • CMC Crypto 200

    -10.41 (-1.80%)

Apple App Commerce Climbed 29% Last Year to $1.1 Trillion

(Bloomberg) -- Apple Inc., touting the value of its App Store just ahead of the company’s developer expo, said that the platform handled transactions worth $1.1 trillion last year, up 29% from 2021.

Most Read from Bloomberg

A study from Analysis Group that was commissioned by Apple found that annual sales and billings — which include money from apps and subscriptions, in-app advertising and physical goods or services — climbed more than 80% on the App Store since 2019. The latest annual increase was an uptick from growth of 27% in 2021 and 2020.

Apple is facing criticism that it wields too much power over the App Store by putting restrictions on developers and charging them a commission of as much as 30%. In citing the report, the iPhone maker is looking to address those concerns by showing how much money it’s making for developers. The company said that 90% of the $1.1 trillion went entirely to businesses rather than commissions to Apple.

“As this report shows, the App Store is a vibrant, innovative marketplace where opportunity thrives,” Chief Executive Officer Tim Cook said in a statement.

Cook will speak to Apple developers next week at the company’s annual Worldwide Developers Conference, where he’s expected to unveil a mixed-reality headset that will have its own App Store. The device represents Apple’s first major new product category since 2015, and the company will need the support of third-party app developers to make it a success.

According to the Analysis Group report, the biggest driver of App Store commerce last year was general retail, followed by travel. Food delivery and pickup apps generated about $77 billion in 2022, while ride-sharing services made roughly $48 billion. In-app advertising grew to $109 billion from $45 billion in 2019, the report found.

Apple’s App Store commission applies to digital goods, not physical items and services sold through apps.

(Updated with more details on $1.1 trillion figure in third paragraph.)

Most Read from Bloomberg Businessweek

©2023 Bloomberg L.P.