App Store Growth Has Plateaued

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App Store Growth 

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Each year, Apple releases data about how much App Store developers earned. The data will allow analysts and investors to get an insight into the money the App Store is making. But this year’s data suggest that the growth is slowing down. 

The company stated that it paid $320 billion to developers. It is an increase of $60 billion. 

Based on a CNBC analysis, the App Store gained over $85 billion in 2022. If the commissions were 15%, the estimated gross would be lower. 

Extrapolating the size of the store’s business based on the developer’s earnings is inaccurate, according to Apple. The reason for this is that the commission varies from 15% to 30%. Most developers are paying a lower commission under the App Store Small Business Program

App Store Subscriptions are Up 

The App Store gained 900 million subscriptions. It is a jump from 745 million in 2021. However, the data point is an indication that the growth slowed down last year. And this is vital for investors. 

App Store is Apple’s major service busienss. It is also a profit machine for the iPhone maker. 

But Apple deals with tough comparisons. The company’s business increased in 2022. It was the result of people buying games and software because of the pandemic. 

It’s also affected by consumer uncertainty because of the interest rates and a possible recession. 

However, the app sales are expected to grow in 2023 because of the year-over-year comparisons. The increases in international markets last year will begin to benefit Apple. 

The App Store is Apple’s cash cow because it generates a significant amount of revenue for the company through the sale of apps and in-app purchases. 

Additionally, the App Store serves as a powerful distribution channel for developers, making it easier for them to reach a large audience of consumers and increase the visibility of their apps. 

This in turn attracts more developers to the platform, which further improves the selection of apps available on the App Store, which leads to more users, it also charges a commission for app developers when they sell something in the App store, which gives extra income.

Apple has maintained that the App Store is the only excellent option for users to securely purchase apps for iOS and iPad OS devices. 

However, many big-name developers are now calling for reforms. Apple is forced to make way for changes to App Store practices. 

Developers want third-party app stores because they don’t want to pay a 30% commission to Apple each time a customer makes a purchase. They said that they could lower the prices for their products and services if App Store would get rid of the fees. 

Some countries have already forced Apple to change its practices. In South Korea, Apple lets developers offer third-party payment methods for App Store apps. The EU goes further by requiring the iPhone maker to allow users to download apps from third-party stores. 

Letting the people know that it has paid billions of dollars to app developers made Apple look better in the eyes of regulators and politicians.


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Author: Jane Danes

Jane has a lifelong passion for writing. As a blogger, she loves writing breaking technology news and top headlines about gadgets, content marketing and online entrepreneurship and all things about social media. She also has a slight addiction to pizza and coffee.

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