Apple Reached 634 Billion Dollars 

On June 2, Apple reached 634 billion dollars  in total sales generated in the last year (2020) through the application distribution service “App Store“, 24% from the previous year It was revealed that it increased. Many people have avoided face-to-face interaction due to the influence of the new coronavirus, and consumption through the app has expanded.

The company has released the results of surveys and analyzes by the US consulting firm Analysis Group for 19 years as data showing the actual situation of the “App Store economic zone“.

The category with the highest amount of money is “physical products / services” such as retail, vehicle dispatch, cooking / grocery delivery, and travel. The amount of money in 20 years increased by 24% from the previous year to 511.0 billion dollars , accounting for about 80% of the total.

“Retail in general” increased 43% to $ 383 billion
Looking at the breakdown, “general retail apps” such as eBay, a major e-commerce (EC) company, Etsy, a handmade e-commerce site, and Taobao, a marketplace of Alibaba Group in China, increased by 43% from the previous year. Of $ 383 billion.

“Cooking delivery apps” such as US door dash, British delivery, and Uber Technologies’ sweets increased 18% year-on-year to $ 36 billion. “Food delivery apps” such as Instacart in the US and corner shops in Chile increased 56% year-on-year to $ 22 billion.

On the other hand, due to the influence of going out, “travel apps” such as Airbnb and U.S. decreased 34% to $ 38 billion, and “vehicle dispatch service apps” such as Uber and U.S. lift decreased by 34% to $ 26 billion. became.

“Digital goods and services” increased by 40% to 9.4 trillion yen
The second largest category was “digital goods and services” such as music / video distribution, e-books, games, and online courses, which increased 41% year-on-year to $ 86 billion. ..

Apple receives commissions from developers and service operators for this digital goods service. For example, in the case of paid apps and in-app purchases, Apple’s share is 30% of the sales amount, and the subscription (continuous billing) service is 30% in the first year and 15% in the second and subsequent years.

Regarding the App Store, US Epic Games, the developer of the popular game “Fort Knight”, filed a complaint, saying that the distribution and billing system is monopoly. In January 2009, Apple reduced commissions to 15% for companies with annual revenues of less than $ 1 million on the App Store, perhaps with the aim of avoiding these criticisms.

However, the $ 86 billion in digital goods services includes the amount traded without going through Apple’s billing system, like some video distribution services.

“The amount paid directly by Apple to developers is only a small part of the huge amount of money, including sales of products and services sold through the app,” Apple said in a report last year. Description. He emphasized that the economic benefits of the App Store are far greater than the transaction value between the company and the developers.

Claims that “90% do not go through the App Store”
The third largest category is “in-app advertising”, and the amount in 20 years was 46 billion dollars (about 5.4 trillion yen), an increase of 4% from the previous year. It has $ 19 billion in in-game advertising, accounting for 41% of this category. Other than that, it’s apps that make money from ads like Facebook, Instagram, Twitter, YouTube, Pinterest, and TikTok.

Of the total sales of $ 634 billion in the App Store economic zone, 90% (value basis) of transactions were made outside the App Store. Apple says it hasn’t received any fees for these. As mentioned earlier, the company gets commissions from paid app developers for digital goods services. Since launching the App Store in 2008, the company has consistently stated that it will not collect commissions from physical products / services or in-app advertisements.