Apple-Commissioned Study Touts App Store Job Growth and Success of Small Developers

Apple today shared details on developer studies sourced from economists at Analysis Group (commissioned by Apple) and the Progressive Policy Group, with the reports aimed at highlighting the successes of small businesses and independent developers on the App Store.

iOS App Store General Feature Desaturated
Between 2019 and 2021, earnings for small developers increased by 113 percent, outpacing the growth of larger developers, according to Analysis Group. Small developers are defined as those who have earned up to $1 million in a year and who have fewer than 1 million annual downloads, with the research excluding those with less than 1,000 ‌App Store‌ downloads. Analysis Group says that more than 90 percent of ‌App Store‌ developers are considered small developers.

Some of those small developers are earning more money because of the reduced commission implemented through the App Store Small Business Program in late 2020, but Apple and Analysis Group suggest there are other growth factors at work in addition to the lower commission rates. Small developers are eligible to pay 15 percent in ‌App Store‌ fees instead of the 30 percent that larger developers must pay, and that cut would represent a 21 percent increase in earnings, under the 113 percent total growth metric the study reports.

The strongest growth in earnings came from developers in France and the United States, who saw 122 and 118 percent growth in earnings in 2021, respectively. The earnings growth rate of small developers who were active in 2019 has exceeded that of large developers by more than double.

app store earnings small developers
Among larger-scale developers who sold digital goods and services and earned more than $1 million in 2021, 45 percent were not on the ‌App Store‌ or had less than $10,000 in earnings in the prior five years, which Analysis Group suggests is indicative of the opportunities available to "nascent developers with innovative ideas."

The second study from Progressive Policy Institute separately highlights the range of jobs that the iOS app economy has been responsible for creating, encompassing software development, sales, design, and more. The study suggests that the iOS ecosystem is responsible for 2.23 million jobs, including indirect and spillover jobs.

As Apple said earlier this year, developers have earned a total of $260 billion since the launch of the ‌App Store‌. There are more than 1.8 million apps on the ‌App Store‌, and 1.8 billion active devices across 175 regions. 80 percent of small developers are active in multiple storefronts, and 40 percent of downloads come from outside of a small developer's home country, with the ‌App Store‌ ecosystem facilitating global sales.

Apple says that the report from Analysis Group "paints a picture of a thriving and dynamic app ecosystem where opportunities and innovations have flourished," and it is no surprise that Apple is eager to point out the successes of the ‌App Store‌ amid regulatory changes that are looming in the United States, Europe, and other countries.

U.S. government officials are considering the Open App Markets Act and the American Innovation and Choice Online Act, with the legislation aimed at allowing developers to use non-Apple App Stores and alternative in-app payment systems on iOS devices, changes that would impact Apple's service revenue, and as Apple argues, the security of the iPhone.

The European Union is working on even more comprehensive legislation that would allow for the sideloading of apps, alternative payment systems, and that would require Apple to open up access to all hardware and software features on the ‌iPhone‌.

Popular Stories

iPhone 17 Slim Feature

'iPhone 17 Air' With 'Major' Design Changes and 19-Inch MacBook Detailed in New Report

Sunday December 15, 2024 9:47 am PST by
Apple is planning a series of "major design" and "format changes" for iPhones over the next few years, according to The Wall Street Journal's Aaron Tilley and Yang Jie. The paywalled report published today corroborated the widely-rumored "iPhone 17 Air" with an "ultrathin" design that is thinner than current iPhone models. The report did not mention a specific measurement, but previous...
Generic iOS 18

Apple Releases First Betas of iOS 18.3 and iPadOS 18.3

Monday December 16, 2024 10:06 am PST by
Apple today seeded the first betas of upcoming iOS 18.3 and iPadOS 18.3 updates to developers for testing purposes, with the software coming a week after Apple released iOS 18.2 and iPadOS 18.2. iOS 18.3 and iPadOS 18.3 can be downloaded from the Settings app on a compatible device by going to General > Software update. There's no word yet on what's included in iOS 18.3 and iPadOS 18.3, ...
Magic Mouse Next to Keyboard

Apple 'Working' on Redesigned Magic Mouse With a Long-Awaited 'Fix'

Sunday December 15, 2024 8:43 am PST by
Apple is working on a redesigned Magic Mouse that will address some "longstanding complaints," according to Bloomberg's Mark Gurman. In his Power On newsletter today, Gurman said Apple in recent months has been working on a "full overhaul" of the Magic Mouse with a design that "better fits the modern era." However, he does not expect the new Magic Mouse to be released in the "next 12 to 18...
AirTag 2 Mock Feature

AirTag 2 Expected to Launch Next Year With 'Considerable' Upgrade to Item Tracking

Sunday December 15, 2024 2:57 pm PST by
Apple plans to release a second-generation AirTag next year with "considerably" longer range for item tracking, according to Bloomberg's Mark Gurman. In his Power On newsletter today, Gurman said the new AirTag will use Apple's second-generation Ultra Wideband chip, or equivalent technology. The chip debuted last year in the iPhone 15 and the Apple Watch Ultra 2, and Apple said it offers up...
apple tv 4k yellow bg feature

New Apple TV Rumored to Launch Next Year With These Features

Tuesday December 17, 2024 9:02 am PST by
The current Apple TV 4K was released more than two years ago, so the streaming device is becoming due for a hardware upgrade soon. Fortunately, it was recently rumored that a new Apple TV will launch at some point next year. Below, we recap rumors about the next-generation Apple TV. Bloomberg's Mark Gurman last week reported that Apple has been working on its own combined Wi-Fi and...
Apple TV 4K hero 221018 feature

Here is Everything New for the Apple TV in the tvOS 18.3 Update So Far

Tuesday December 17, 2024 6:25 am PST by
Apple on Monday seeded the first tvOS 18.3 beta to developers for testing. The update will likely be released in January. So far, there are only minor changes for the Apple TV, with one new feature and a few code changes discovered. Below, we outline what is new in tvOS 18.3 so far. Robot Vacuum Support in Home App First, tvOS 18.3 will add robot vacuum support to the Home app on the...
iphone 17 pro concept render cameras

Major iPhone 17 Pro Redesign Backed by Supply Chain Info, Claims Leaker

Thursday December 12, 2024 4:36 am PST by
Next year's iPhone 17 Pro models will reportedly feature a major redesign, specifically centering around changes to the rear camera module, and now new supply chain information appears to confirm the striking change, according to a Chinese leaker. iPhone 17 Pro concept render Late last month, The Information's Wayne Ma claimed that the rear of the ‌iPhone 17‌ Pro and ‌iPhone 17‌ Pro...

Top Rated Comments

6787872 Avatar
34 months ago

[HEADING=2]Apple-Commissioned Study[/HEADING]
stopped reading after this
Score: 7 Votes (Like | Disagree)
sw1tcher Avatar
34 months ago

And yet all the vaccine safety studies were self-performed by the drug companies.
with the results peer reviewed by qualified professionals.
Score: 4 Votes (Like | Disagree)
dannyyankou Avatar
34 months ago
Ok that's great Apple. But use the money to reduce your fees from 30% to 15%, not on paying for all these endless studies.
Score: 3 Votes (Like | Disagree)
Stella Avatar
34 months ago
A company commissions a report, and to no ones surprise the findings are favourable to them.
Score: 3 Votes (Like | Disagree)
MauiPa Avatar
34 months ago

It's wild to think how software didn't even exist before Apple created the App Store in 2008. Are we sure we want to open up competition on these devices? We might go back to the dark days of plentiful computers with no software to run on them.
I'm still searching this statement looking for the message. But if you don't remember, before apple, and Google and Microsoft and Epic and...... sold software in app stores, you ordered boxed software, or went to a store to buy disks. Not sure what distribution costs, production costs, store fees transportation etc, costs were, but it was a lot.
Score: 2 Votes (Like | Disagree)
Smearbrick Avatar
34 months ago

with the results peer reviewed by qualified professionals.
And published in recognized journals of medicine.

These references are getting really old.
Score: 2 Votes (Like | Disagree)