Apple has released an economic study claiming its U.S. App Store ecosystem facilitated $406 billion in developer billings and sales in 2024. The report, conducted by academics Professor Andrey Fradkin and Dr. Jessica Burley makes a striking assertion: Apple collected no commission on over 90 percent of this vast commerce.
This figure is dominated by physical goods, services, and in-app advertising. These areas are distinct from digital sales where Apple’s 15-30% fees typically apply. Globally, the App Store handled 66 billion app updates per week in 2024, underscoring its operational scale.
Apple’s report appears strategically timed before Apple’s Worldwide Developers Conference (WWDC). It also comes amid ongoing global regulatory scrutiny, aiming to reshape perceptions of the App Store’s economic role. For readers, it presents Apple’s argument that its platform is a broad economic facilitator.
Its direct financial take is less prevalent than often assumed, adding complexity to the App Store fee fairness debate. Apple CEO Tim Cook stated about the case that “for more than 15 years, the App Store has created incredible opportunity for app developers, entrepreneurs, and businesses of all sizes.”
The study indicates the App Store ecosystem’s U.S. value nearly tripled from $142 billion in 2019. Furthermore, U.S.-based developers’ apps were downloaded over 12.4 billion times in 2024, a 36% increase from 2019.
Breaking Down The Billions
The $406 billion total for 2024 includes $277 billion from physical goods and services, $75 billion from in-app advertising, and $53 billion from digital goods and services. Apple highlighted that spending on physical goods and services more than tripled since 2019.
General retail and grocery delivery saw growth exceeding fourfold. U.S. developer earnings also reportedly more than doubled in five years. Small developers active in 2021 saw a 76 percent earnings increase through 2024.
Apple also pointed to its security efforts, stating the App Store prevented over $9 billion in fraudulent transactions in the last five years and rejected 1.9 million app submissions in 2024. Some analysts, however, view the report’s timing as a strategic public relations move.
Apple seems to be steering the conversation in advance of WWDC and amid ongoing antitrust scrutiny. Emphasizing the parts of their business where they don’t collect fees is a savvy public relations strategy, but regulators are more likely to concentrate on the segments where Apple does profit.
The $406 billion is indeed a big number, but it’s largely a reflection of the overall digital economy moving through iOS. The core contention for many developers is still the fee structure on direct digital sales, which this report doesn’t fundamentally change, though it provides useful context on the broader ecosystem.
Legal And Regulatory Headwinds Continue
Apple’s positive framing contrasts with significant legal and regulatory challenges. The company is involved in a protracted legal dispute with Epic Games. Epic’s CEO, Tim Sweeney, affirmed that their billion-dollar fight was for what he termed “digital freedoms.”
A U.S. court found in April that Apple violated a 2021 anti-steering injunction, with the judge determining Apple acted “with the express intent to create new anticompetitive barriers.” The company was also referred for potential criminal contempt.
While Apple appealed this ruling, it did adjust U.S. App Store guidelines. This enabled services like Spotify to offer direct audiobook purchases. Epic Games, however, has faced ongoing issues. It recently asked a judge to compel Apple to relist Fortnite. Sweeney has accused Apple of weaponizing its App Review procedure, stating, “App Review shouldn’t be weaponized by senior management as a tool to delay or obstruct competition, due process, or free speech,”
Global Scrutiny And Developer Support
The pressure is not limited to the U.S. The European Commission recently detailed its ruling that Apple’s anti-steering practices breach the Digital Markets Act (DMA). This upheld a €500 million fine. The EC mandates that any Apple remuneration for steered transactions be a one-time fee for initial user acquisition.
Microsoft also formally accused Apple of obstructing its Xbox mobile web store. It asserted in an amicus brief that “Apple’s conduct harms consumers and developers alike.”
In its report, Apple also emphasized its developer support initiatives. These include the App Store Small Business Program, which offers reduced commissions for eligible developers like the team behind the Slopes app. Apple also cited its Developer Academy in Detroit, which has trained over 1,200 students.
The company claims to support over 2.9 million U.S. jobs. Despite these efforts and the new economic data, the fundamental disagreements over App Store control and commission structures persist globally.
