In a remarkable achievement for the tech giant, Apple has revealed that its App Store in the United States facilitated a staggering $406 billion in developer billings and sales throughout 2024. This announcement underscores the App Store’s role as a pivotal platform for innovation and economic growth. According to a study conducted by Professor Andrey Fradkin from Boston University Questrom School of Business and economist Dr. Jessica Burley from Analysis Group, this milestone highlights the significant opportunities the App Store provides to developers worldwide. Notably, over 90 percent of these billings and sales were conducted without developers having to pay any commission to Apple, emphasizing the platform’s appeal for both small and large developers.
### Unprecedented Growth in the App Store Ecosystem
The App Store ecosystem has experienced phenomenal growth over the past five years. From a valuation of $142 billion in 2019, it has nearly tripled in size to reach $406 billion by 2024. This growth has been mirrored in the earnings of U.S.-based developers, which have more than doubled during the same period. Small developers, in particular, have thrived, with their earnings rising by an impressive 76 percent between 2021 and 2024. This growth trend reflects the App Store’s ability to cater to diverse developers, from individual entrepreneurs to large enterprises.
Tim Cook, Apple’s CEO, commented on this success, noting, “For more than 15 years, the App Store has created incredible opportunities for app developers, entrepreneurs, and businesses of all sizes. This includes the many U.S. developers who are innovating, building their businesses, and finding exceptional success on the App Store. We’ll continue to invest in powerful tools, technology, and resources to help developers in the U.S. and around the world take their apps to new heights and create transformative experiences for users.”
### Diverse App Categories Propel Growth
Since its inception in 2008, the App Store has served as a robust business platform for developers across various categories. The recent study estimates that in 2024, the App Store ecosystem facilitated $277 billion in sales from physical goods and services, $75 billion from in-app advertising, and $53 billion from digital goods and services. Key factors driving this growth include the rising popularity of apps related to food and grocery delivery, entertainment, and enterprise solutions. Additionally, the increasing integration of AI-powered apps is transforming users’ daily lives.
The spending patterns have also evolved significantly since 2019. Expenditures on physical goods and services have more than tripled, while spending on digital goods, services, and in-app advertising has more than doubled. Within the physical goods and services category, general retail spending and grocery delivery have seen a fourfold increase. By 2024, travel and food delivery expenditures surpassed ride-hailing, with users increasingly turning to apps for travel bookings and restaurants offering delivery options through mobile platforms. U.S. developers have also seen their earnings grow across top categories like productivity, education, and business, with the gaming sector witnessing the highest earnings in 2024.
### Global Impact of U.S. Developers
U.S. developers have successfully leveraged the App Store’s global reach, listing their apps on storefronts in 175 countries and regions. This international presence is facilitated by the App Store’s seamless payment and commerce system, allowing developers to monetize their apps both domestically and internationally. Many apps developed in the U.S. have been featured prominently in app charts outside the country, ranking among the top five most-downloaded apps in 170 out of 175 App Store storefronts.
Apple’s commitment to maintaining a safe and trusted marketplace is evident in its rigorous App Review process and robust privacy and security protections. A recent report from Apple disclosed that the App Store prevented more than $9 billion in fraudulent transactions over the past five years. In 2024 alone, 1.9 million app submissions were rejected for failing to meet Apple’s stringent standards for security, reliability, and user experience.
### Empowering Developers with Resources
Apple continues to invest in App Store features designed to simplify the distribution and discovery of apps and games. These investments include enhancements to App Store Connect, which offers developers tools and technologies to track app performance and engagement through App Analytics. StoreKit, custom product pages, and new features like App Store Accessibility Nutrition Labels are also part of these improvements, set to be available to developers later this year.
The App Store Small Business Program stands out as an initiative aimed at supporting the next generation of groundbreaking apps by small developers, such as “Slopes.” Originally launched as a passion project by a solo developer, Slopes has now achieved international success and is trusted by over 5 million skiers and snowboarders. This app caters to winter sports enthusiasts, enabling them to track and record their personal stats, locate friends on the mountain, and explore interactive resort maps. The team behind Slopes has integrated various Apple technologies, including HealthKit, Live Activities, and ARKit, while also expanding to the Apple Watch.
In addition to these efforts, Apple offers developers a variety of online and in-person programs to support app elevation, including “Meet with Apple.” The Apple Developer Center in Cupertino serves as a hub for year-round activities, providing a supportive environment for developers to improve their apps through more than 250,000 APIs, including those in frameworks like HealthKit, Metal, Core ML, MapKit, and SwiftUI. Resources such as Pathways and Apple Developer Forums connect developers within the community, offering tools, documentation, and videos to create outstanding products on Apple’s platforms.
### Educational Initiatives for Aspiring Developers
To further support the developer community, Apple launched its first U.S.-based Apple Developer Academy in Detroit in 2021, in collaboration with Michigan State University. This academy aims to equip students with foundational skills in coding, AI, design, and marketing. Since its inception, the academy has trained over 1,200 students. Additionally, more than 900 students have participated in the Apple Foundation Program, an intensive four-week course focusing on app development fundamentals offered at the academy and Henry Ford College.
Apple’s influence extends beyond direct employment, as the company supports over 2.9 million jobs across the U.S. through partnerships with suppliers, manufacturers, and developers in the thriving iOS app economy. The App Store’s success and Apple’s commitment to empowering developers underscore the company’s role in driving innovation and economic growth in the digital age.
For further details on the App Store’s impact and Apple’s initiatives, you can refer to the original study conducted by Professor Andrey Fradkin and Dr. Jessica Burley available on Apple’s newsroom website.
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