Apple (AAPL) continued to defend its App Store revealing how the small developers have found success through an online marketplace. A study conducted by the Analysis Group and funded by Apple “A Global Perspective on the Apple App Store Ecosystem,” found that total billings and sales in the App Store grew by 24% year-over-year to $643 billion in 2020.
The information comes after Apple wrapped up its defense in its courtroom with “Fortnite” maker Epic Games, which pointed that the company abuses its monopoly power of the App Store to the damage of developers and customers. Epic laid down it’s unfair that Apple requires developers to use its proprietary payment system when making sales through the App Store. Also, developers that make more than $1 million a year need to pay a 30% commission on app sales, and those that make less than $1 million pay 15%.
Losing the case, could force Apple to change its fee structure, or allow third-party app stores on the iPhone, something the tech giant says could compromise user security. During his testimony, Cook called the App Store an “economic miracle” and informed that opening up its iOS platform to third-party app stores would invite malware and pose security complications for Apple’s customer base.
The study also pointed to the success of companies that have created apps for iOS in the U.S. and in Europe, saying that 75 of those businesses have gone public or were acquired since 2011. Apple’s defense rests on that developers have a lot to gain from being on the App Store. Even with the App Store’s $643 billion in sales in 2020, the study says measuring the App Store’s impact by the sales it has facilitated undervalues the storefront significantly, as the developers can monetize their apps in ways without transacting through the store.
Dow 30 component Apple (AAPL) has revolutionized personal technology with the introduction of the Macintosh in 1984. Today Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch, and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to “leaving the world better than they found it. To learn more about Apple (AAPL) and track its ongoing progress at Vista Partners Apple (AAPL), Coverage Page.
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