App Store billings and sales hit a whopping $643 billion last year – Gameingnow
Small developers continue to dominate the App Store
The report also shows that close to 80% of small developers have apps in App Stores across different countries. On average, App Store developers get paid from customers located in more than 40 countries. Overall, the App Store is available in more than 175 countries and regions, supports more than 40 different languages, 45 different currencies and over 200 different payment methods.
We should point out that the App Store has also generated conflict between Apple and developers because of the company’s in-app payment system under which Apple snags as much as a 30% cut of in-app transactions. And any developer that offers its own platform to compete with Apple and get around the 30% Apple Tax will find its app removed from the App Store. This is what happened with Epic Games and its popular Fortnite title.
The App Store has become a center of controversy because of the Apple Tax
Apple’s in-payment platform did get a thumbs up from the CEO of Snapchat parent Snap, Evan Spiegel. The executive said that Snap is “happy” to pay Apple’s 30% cut noting that Snapchat would not be around if it weren’t for Apple and the App Store. This is the minority view, but another developer has praised Apple’s app ecosystem.
Wakeout! is an app that offers 1,500 exercises to keep users active and its founder, Andres Canella, called Apple’s in-app payment system “essential” for a small business. He states that “It’s enabled us to expand globally without having to worry about calculating things like local taxes or currency conversion. And using it is so transparent for our customers — we’re able to reach everywhere, China, France, you name it. We get all the benefits of selling globally without ever having to think about it, which is priceless.”
Still, for every Snapchat and Wakeout! there is a Fortnite, a Netflix, or a Spotify that publicly attacks the App Store and Apple calling the setup a monopoly and anticompetitive.