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App Store Generates $519 Billion Dollars in Commerce in 2019
With global sales surpassing half a trillion dollars in 2019 alone, Apple’s App Store offers a flourishing dynamic and competitive platform for e-commerce for developers and companies worldwide
Image via Apple
Market research conducted by independent economists at the Analysis Group in a new study revealed the scale of the App store’s economy and where the highest value categories lie — mobile commerce (m-commerce) apps, digital goods and services apps, and in-app advertising. This encompasses the full range of the entire app ecosystem of the App Store that has spurred innovation in 175 countries, transforming the way that we connect, learn and work.
The App Store launched in 2008. Today, the App Store is home to almost 2 million apps and is visited by half a billion people each week across 175 countries, helping creators and curious people eager to learn and connect.
Image via Apple
“The App Store is a place where innovators and dreamers can bring their ideas to life, and users can find safe and trusted tools to make their lives better.”
The Analysis Group study looked at 2019 data to capture an accurate snapshot of the full App Store ecosystem, taking into account all sources of commerce. The study revealed that sales from physical goods and services accounted for the largest share of 2019 sales at $413 billion. In that category, m-commerce apps generated the majority of sales, and retail was the largest within this division at $268 billion. Retail apps included apps of traditional brick-and-mortar stores such as Target and Best Buy, and virtual marketplaces that sell physical goods, such as Etsy. They do not include grocery delivery, which is its own category.
Image by Jean-Marc Giboux | Credit: AP Images for Target
Other m-commerce apps that also generated significant sales from physical goods and services included travel apps such as Expedia and United, that accounted for $57 billion; ride-hailing apps, including Uber and Lyft, comprised $40 billion in sales; and food delivery apps, including DoorDash and Grubhub, making up $31 billion.
Billings and sales from digital goods and services totaled $61 billion. This category included apps for music and video streaming, fitness, education, ebooks and audiobooks, news and magazines, and dating services, among others. Games were the most popular apps within this category. Notable games of 2019 included “Mario Kart Tour,” which was the most downloaded game of 2019, and “Sky: Children of the Light” from indie developer thatgamecompany, which won Apple’s 2019 iPhone Game of the Year.
In-app advertising sales also accounted for $45 billion, and of that, 44 percent was derived from games. Non-gaming apps that generate substantial in-app advertising sales are often free to download and use, such as Twitter and Pinterest, though others also offer in-app purchases to access content, such as The New York Times and MLB.com.
Changes Due to COVID-19
As social distancing protocols have become common worldwide due to COVID-19, individuals have changed the way they live and are using more apps. Social apps help friends and families stay connected, while education and business collaboration apps are helping students and employees adjust to remote working environments. Food and grocery delivery apps have benefited from increased consumer demand at the same time that apps related to businesses that have faced restrictions, or those that require in-person interactions, have seen a sharp drop-off. Many brick-and-mortar businesses have also turned to mobile commerce, including some that may otherwise have been forced to close without access to this alternative and popular digital platform.
Apple Gearing Up for Largest Worldwide Developer's Conference Starting June 22
WWDC20 to include keynote address, Platforms State of the Union, 100+ engineering sessions, all-new Developer Forums, 1-on-1 labs with more than 1,000 Apple engineers, and more
Image via Apple
Kicking off with a keynote on June 22nd at 10 a.m. PDT, Apple’s WWDC20 will be the biggest WWDC to date, bringing together the global Apple developer community of more than 23 million in an unprecedented, virtual way, from June 22 to 26. In its 31st year, Apple’s WorldWide Developer Conference (WWDC) includes a familiar line up and schedule with additional engineering and hands-on sessions.
Special Event Keynote
June 22, 10 a.m. PDT
Apple shares its latest updates and innovations coming to all Apple platforms later this year. Streaming directly from Apple Park via apple.com, the Apple Developer app, the Apple Developer website, the Apple TV app, and YouTube, this session will also be available for on-demand playback after the conclusion of the stream. For viewers in China, the keynote will also stream on Tencent, iQIYI, Bilibili and Youku.
Platforms State of the Union
June 22, 2 p.m. PDT
Dive deeper into the latest advances across iOS, iPadOS, macOS, tvOS, and watchOS with Apple’s engineers. The State of the Union will be available on demand via the Apple Developer app and the Apple Developer website. It will also be available for playback on Tencent, iQIYI, Bilibili and YouKu for viewers in China.
100+ Engineering Sessions
June 23 to 26
Starting June 23, developers can learn how to build the next generation of apps with more than 100 technical and design-focused sessions helmed by Apple engineers. Videos will be posted each day at 10 a.m. PDT and will be available in the Apple Developer app on iPhone, iPad, and Apple TV, as well as on the Apple Developer website.
All-New Apple Developer Forums
Redesign coming June 18
The all-new Apple Developer Forums will connect the developer community with more than 1,000 Apple engineers to answer questions and engage in technical discussions. Starting the first day of WWDC, anyone can search and view the forum discussions to follow along, and Apple Developer Program members will be able to post their own questions and learn directly from Apple experts.
1-on-1 Developer Labs (by appointment)
June 23 to 26
Developers will be able to request an appointment with the Apple engineers who helped build the latest advances in Apple platforms, offering one-on-one technical guidance and in-depth details on how to implement new features. Developer Labs will be open to Apple Developer Program members as space is available.
On June 16, Apple will celebrate student developers from all over the world with the announcement of finalists in the Swift Student Challenge, an opportunity for students of all ages to showcase their love of coding by creating their own Swift playground.
Developers are encouraged to download the Apple Developer app where additional WWDC20 information will be shared ahead of June 22. Information will also be made available on the Apple Developer website and by email.
View our previous WWDC coverage here and by searching our site. We’ll provide more insight and in-depth coverage during the event!