Global spending on mobile applications is on the rise. “Apple” makes it difficult to compete

In the face of antitrust claims and anger from some app makers, Apple made concessions to app developers on its phones in November 2020 by introducing the App Store Small Business program, which cuts the App Store commission from 30 to 15 % for developers earning less than $ 1 million per year. year of income.

Apple also announced last week that it would allow app makers to notify users of payment methods outside of Apple’s system, including email, which would allow them to bypass the commission. App Store.

Since the launch of the App Store in 2008, Apple has accounted for 30% of app sales, in-app purchases of digital content, and subscriptions made through apps compatible with an operating system.

App analytics company SensorTower estimates that App Store revenue was over $ 40 billion in the first half of 2021.

Assuming the bulk of that total qualifies for Apple’s commission, that would add up to at least $ 10 billion in revenue in just six months, which would be a new record.

An expert witness called in the company’s case against Fortnite maker Epic Games estimated that Apple earned $ 22 billion in App Store commissions last year with a staggering 80% profit margin, which Apple disputed, arguing that its actual profit margins are much lower.

According to SensorTower analysis, App Store sales reached $ 41.5 billion in the first half of 2021, compared to sales of $ 34 billion in the same period last year. and $ 26.3 billion in the first half of 2019.

This compares to consumer spending of around $ 23.4 billion on Google’s Android App Store in the first half of 2021, which also rose from levels of $ 18 billion in the first half of the year. last year and $ 14.3 billion in the same period of 2018. 2019.