Citing facts, Apple denies the ‘Apple tax’ hype

Who can recall the old App Store? Where are those apps now?

Days until WWDC and Apple has once again published research to essentially reject the flawed argument that it takes 30% ‘tax’ from its developers, which it doesn’t.

The ‘Apple tax’ hype is hype

That’s not to say that the truth has ever gotten in the way of a narrative designed to suit shadowy vested interests. As someone scraping an existence in a country reeking of fake arguments in favor of leaving the EU, I know what falsity smells like. So does Apple.

That’s why in its latest slice of research, Apple tells us App Store developers generated $1.1 trillion in total billings and sales in the App Store ecosystem in 2022. It also says 90 percent of billings and sales accrued solely to developers, with no commission to Apple.

This is a stat that won’t fit the narrative. I’ll repeat it: “90% of billings and sales go directly to the developers.” Oh, and the App Store grew 29% year on year.

The data comes from an independent study by economists from Analysis Group (which Apple paid for).

What Apple said

“We’ve never been more hopeful about — or more inspired by — the incredible community of developers around the world,” said Tim Cook, Apple’s CEO.

“As this report shows, the App Store is a vibrant, innovative marketplace where opportunity thrives, and we’re as committed as ever to investing in developers’ success and the app economy’s future.”

More from the release

• App Store developers generated $910 billion in total billings and sales from the sale of physical goods and services, $109 billion from in-app advertising, and $104 billion for digital goods and services.
• Developer billings and sales increased by 27 percent between 2019 and 2020; 27 percent between 2020 and 2021; and 29 percent between 2021 and 2022.
• All told, since 2019, U.S. developers’ billings and sales have increased by more than 80 percent.
• In Europe, developers’ billings and sales since 2019 saw an above average increase of 116 percent.
• The App Store attracted over 650 million average weekly visitors worldwide in 2022, according to new data from Apple.
• Users downloaded and redownloaded apps an average of more than 747 million and 1.5 billion times each week in 2022, respectively.
• The iOS app economy now supports over 4.8 million jobs across the U.S. and Europe, with approximately 2.4 million in each region.

Additional insights 

There were many other insights.

As COVID restrictions eased in many parts of the world, app categories like travel and ride-hailing saw demand rebound significantly. Travel sales made on iOS apps increased by 84 percent in 2022, alongside a 45 percent increase in sales on ride-hailing apps.

Food and grocery sales were also among the fastest-growing app categories. Since 2019, iOS app-based food delivery and pickup sales more than doubled, and grocery sales more than tripled.

In addition, enterprise apps have grown in popularity with companies around the world in the last few years. In 2022, these apps represented one of the fastest-growing digital goods and services categories in Analysis Group’s estimate of billings and sales.

15 years of the App Store

Fifteen years since its launch in 2008, the App Store has never offered developers more opportunities, or Apple users more apps that enrich their lives. All told, iOS developers have earned more than $320 billion on the App Store from 2008 to 2022.

The Analysis Group study found that iOS users have downloaded apps more than 370 billion times from 2008 to 2022. And today, the App Store has more than 123 times as many apps — nearly 1.8 million — to choose from, compared to the thousands available on the App Store at the end of 2008.

In 2022, the App Store blocked more than $2 billion in fraudulent transactions — and rejected 1.7 million app submissions for failing to meet privacy, security, and quality standards.

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