As per CNBC’s analysis, Apple’s App Store made a revenue of around US $ 64 billion in 2020 which is a 28 percent increase from the estimated US $50 billion made in 2019. The analysis conveys a good growth story of the App Store. Notably, in the year 2018-19, it increased by only 3.1 percent. Even though the analysis fails to put forward the exact reason for this growth story, it is likely that it has something to do with the COVID-19 pandemic.
While reporting financials, Apple adds the money it makes from the App Store with its services revenue. Apart from some exceptions, Apple takes a 30 percent cut of most of the money coming into the App Store which represents billions of dollars of revenue. Despite recent pushback from developers like Hey.com and legal challenges from Epic Games, Apple typically guards its take carefully.
Recently, Apple’s grip has loosened a little. Now, it takes a 15 percent cut from developers who make under $1 million a year from the App Store. However, this is not likely to have a huge change in revenue estimates. As per analysts, the top 2 percent of App Store developers generate 95 percent of the revenue.
Since 2008, every year, Apple reports how much money it has paid out to developers. CNBC has used that figure to calculate the App Store revenue number by subtracting last year’s number from this year’s. After this, a 30 percent cut is accounted for. Frankly, the numbers might be rough estimations because Apple does not self report them directly.