According to a recent study conducted by economists at Analysis Group, small developers on the Apple App Store have experienced remarkable growth in their businesses, outpacing larger developers and reaching a broader customer base worldwide.
Small developers, characterized as those earning up to $1 million annually and with fewer than 1 million annual downloads, experienced a remarkable 71 percent increase in revenue between 2020 and 2022, as per Apple's report.
The United States saw an even more impressive surge, with earnings skyrocketing by 83 percent during the same period.
This illustration photo shows the Apple app store logo reflected from an iPhone onto the back of an iMac in Los Angeles, August 26, 2021.
All About the Gains
The study titled "Small Business Developers and App Creators on the App Store in 2022" uncovered the revenue growth of small developers as they devised approaches to meet their users' needs.
Representing over 90 percent of all developers on the App Store, these entrepreneurs achieved revenue growth across a wide range of app categories. Notably, small developers specializing in health and fitness, sports, and lifestyle apps more than doubled their earnings in the past two years.
The App Store, with its global presence in 175 countries and support for over 40 languages, has been instrumental in the success of developers of all sizes. Small developers, in particular, have capitalized on this expansive reach, with nearly 80 percent of them actively present on multiple storefronts in 2022.
Moreover, around 40 percent of app downloads from small developers were initiated by users residing outside of the developers' home countries.
The economists also noted that developers who monetize their apps by selling digital goods and services across multiple storefronts reported earnings from users on over 40 platforms on average.
The research further highlighted how the App Store has facilitated the growth and scalability of small businesses, enabling them to establish a global footprint.
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Newcomers Making Big Cash
A significant number of developers who exceeded $1 million in earnings in 2022 were previously small developers. Remarkably, five years ago, 40 percent of these global developers either did not have a presence on the App Store or had earned less than $10,000.
The Analysis Group economists discovered that thousands of new developers and entrepreneurs from around the world joined the App Store in 2022.
Among these newcomers, 25 percent hailed from Europe, 23 percent from China, 14 percent from the United States, 4 percent from Japan, and 35 percent from other regions, such as South Korea, India, and Brazil.
Apple has provided a range of initiatives to support small developers on the App Store. These include the App Store Small Business Program, Apple Entrepreneur Camp, App Accelerators, and Apple Developer Academies.
Furthermore, continuous initiatives like App Store Sessions, Ask Apple, and Tech Talks provide developers with year-round chances to directly engage with Apple experts, acquiring valuable insights, support, and feedback regarding the latest features and technologies.
To see the full findings of the study, click here.
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