Developer Earnings On App Store Reaches $70 Billion

Apple has disclosed that its developers from around the world have made a combined total of $70 billion by selling their apps on App Store since the store was unveiled in 2008. With Apple taking 30% from every app sale, it means revenues generated from App Store could have exceeded $100 billion.

“Seventy billion dollars earned by developers is simply mind-blowing. We are amazed at all of the great new apps our developers create and can’t wait to see them again next week at our Worldwide Developers Conference,” Worldwide Marketing senior vice president at Apple, Philip Schiller, said.

Entertainment and gaming

In the last one year downloads on the App Store have increased by more than 70% with the leading categories being entertainment and gaming. During those twelve months downloads in the video and photo category have increased by close to 90%. Lifestyle apps which include fitness and health apps also registered growth of more than 70% during the same period.

In May, the Cupertino, California-based tech giant disclosed in its quarterly results that revenue from the App Store grew by 40% from the previous year resulting in a quarterly record. The exact amount was, however, not disclosed. The reason for the success of the App Store has partly been attributed to breakout hits such as Super Mario Run and Pokemon GO.

Payout amounts

The last time the payout amount from App Store was disclosed was last year in August when the iPhone maker’s chief executive officer Tim Cook revealed that developers had made more than $50 billion since the store was launched.

The increase in the payouts to developers and the increase in the number of downloads comes in the wake of changes that were made by Apple about a year ago to the App Store. Some of the changes included allowing all apps to sell subscriptions as well as reducing the amount of time it took to approve apps. With regards to subscriptions Apple also announced that it would be reducing its cut to 15% from 30% if the subscriber maintained their subscription for more than one year.

AR and VR

In the future Apple is planning on offering developers tools that they can use to create products for virtual reality and augmented reality experiences. Not only are these engaging experiences expected to boost sales especially with regards to games but they are also expected to have wide-ranging implications in enterprise productivity, healthcare and training.

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