Apple today shared details on developer studies from economists at the Analysis Group and the Progressive Policy Group, which were commissioned by Apple to highlight the successes of small businesses and independent developers on the App Store.
According to Analysis Group, the earnings for small developers increased by more than the growth of larger developers. 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 not including those with less than 1,000 downloads. According to the Analysis Group, more than 90 percent of developers are small developers.
Some 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. The study shows that the cut in fees for small developers would increase their earnings by 21 percent.
The United States and France saw the highest growth in earnings, with 122 and 118 percent growth, respectively. The earnings growth rate of small developers has been more than double that of large developers.
45 percent of larger-scale developers who sold digital goods and services and earned more than $1 million in 2021, 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 situation.
The range of jobs that the app economy has been responsible for is highlighted in the second study. The study suggests that the Apple product is responsible for 2.23 million jobs.
Apple said earlier this year that developers have earned $260 billion since the launch of the App Store. There are more than one 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 facilitating global sales.
Apple says that the report from Analysis Group paints a picture of a thriving and dynamic app environment where opportunities and innovations have flourished, and it is no surprise that Apple is eager to point out the successes of the App Store.
The Open App Markets Act and the American Innovation and Choice Online Act are being considered by the U.S. government, with the aim of allowing developers to use non-Apple App Stores and alternative in-app payment systems.
The European Union is working on legislation that would allow for sideloading of apps, alternative payment systems, and that would require Apple to open up access to all hardware and software features.
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