Apple revealed a summary of the performance of its digital services during the past year 2021, and said that App Store It set a new annual record for app developer earnings, which indicates that App Store sales continued to grow rapidly despite Apple's problems in terms of the commission it charges 15 per in-app purchase, strict App Store policies, and alternative payment methods.
App developer earnings
She said Camel It paid developers in 2019 $155 billion, and at the end of 2020, it was $200 billion, an increase of $45 billion. At the end of 2021, it paid app developers $260 billion since the launch of the App Store, which was launched in 2008, which means A jump in developers' profits of $60 billion.
These numbers came as part of a broader announcement from Apple that aims to show momentum for its services sector and is an important signal to investors and analysts who want to see what the company earns, as many believe that Apple makes money not only selling devices but also making billions of dollars by selling services and applications to its users.
Apple Store Revenue
Apple pays developers between 70% and 85% of total revenue for its App Store which takes between 15% and 30% for every in-app purchase.
Previously, the Apple Store's total revenue could be calculated by assuming its commission was equal to 30% of the store's total sales, but in the past year, the company changed its commission structure several times in response to regulatory and legal challenges.
In particular, in 2021, Apple introduced the Small Business Program, which cut fees to 15% for developers who make less than a million dollars a year and according to estimates, about 98% of App Store developers fall into this category but it represents only a small portion of the total the sales.
Apple also reduced its commission to 15% for news applications in the event that those applications provide content for its Apple News application, and for all developers, the company gets only 15% of the second year of subscription, instead of 30%.
In short, if the commission is fixed at 15%, the profits will be $70.58 billion and if Apple's commission is fixed at 30%, then this means that its App Store profits amounted to $85.71 billion in 2021 compared to about $64 billion last year when the commission was 30% .
finallyApple also said that it has 745 million paid subscriptions to services such as Apple Music and iCloud in addition to any user who subscribes to an app through its App Store, an increase in the number of subscribers compared to 700 million in 2020.