Apple: App Store predicts the company to be able to generate a whopping $643 billion in 2020 sales. Most of these were not subjected to the 30% fee that the company collects on its app sales and even its in-app purchases. This might not actually help its case court, but it actually does bring into focus how the company had created an app-based economy that is now likely to reach a trillion per year, as per reports.

Apple App Store 24% Year-Over-Year Growth

According to TechSpot, this week, Apple was happy to report that the App Store was able to generate not less than $643 billion when it came to billings and shares previously during 2020. This marks quite a strong 24% year-over-year growth. Quite interestingly 90%  of that occurred somewhere outside the App Store, which confirmed the earlier reports of Apple grossing just a little over $64 billion.

The Copertino giant actually commissioned a study by an economist at Analysis Group in order to look at the App Store from a whole global perspective, as well as how it is actually performed through the pandemic. Among the actual findings is that the number of small developers has actually increased by 40% in the course of the last five years.

Apple 40% Earnings Increase

The 40% increase was why the company's earnings increased to the point where one out of eight actually exceeded the one million a year cutoff for what is actually considered a small developer. Apple also states that one in four small developers have also seen an average increase in their own earnings of 25% a year between 2015 up to 2020. It was stated that four in five have expanded to operate in over 40 countries.

The company had also touted the success of large developers in actually taking their  companies public, with 40 different app-based companies in both the US and Europe achieving an aggregate valuation of a whopping $459 billion during their IPO. a further 39 companies in the two different regions have been acquired ever since 2011 for over $45 billion.

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Apps that Profited Through Apple

Notable examples of companies include Snapchat, which officially went public in 2017 at a whopping $33 billion valuation, and Airbnb, which officially went public last year during the $47 billion valuation. When looking even more closely, the whopping $643 billion figure is a sum of estimates across a number of different categories of apps as well as different monetization strategies.

The best category by far is that of actual physical goods and services, which had generated up to $511 billion, while the smallest is that  of its digital payments, which had only generated just around $5 billion. Digital goods and services saw a whopping 41% boost, while sales in the whole travel and ride hailing categories contracted by over 30%.

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This article is owned by Tech Times

Written by Urian B.