Apple today shared details of developer research from economists at the Analysis Group (commissioned by Apple) and the Progressive Policy Group, reports that aim to highlight the success of small businesses and independent developers on the App Store .
According to the report’s analytical data, between 2019 and 2021,Small developers saw their revenue grow 113%, outpacing the growth of larger developers. Small developers were defined as those with annual revenue of $1 million or less and fewer than 1 million annual downloads, and the study did not include developers with less than 1,000 App Store downloads. Analysis Group says that more than 90 percent of App Store developers are considered small developers.
Apple cut commissions through the App Store Small Developer Program in late 2020, and some of those small developers made more money. Small developers are eligible to pay only 15% of the App Store fee, instead of the 30% that large developers must pay. In addition to lower commission rates, there are other growth factors at play, Apple and Analysis Group said.
Developers with the strongest revenue growth come fromFrance and America, their revenue will grow by 122% and 118%, respectively, in 2021. Smaller developers in China saw their revenue grow by 94%, ranking 5th. Smaller developers who were active in 2019 have grown earnings more than twice as fast as larger developers.
Of the large developers selling digital goods and services and generating more than $1 million in revenue in 2021, 45 percent do not make money from the App Store or have less than $10,000 in revenue in the first five years, which Analysis Group believes shows that Opportunities are offered to “new developers with innovative ideas”.
A second study by the Progressive Policy Institute separately highlighted the scope of work that iOS apps are responsible for creating, including software development, sales, design, and more.The study shows that the iOS ecosystem has created a total of 2.23 million direct or indirect jobs.
IT Home has learned that Apple earlier said that since the launch of the App Store, developers have earned a total of $260 billion in revenue. There are more than 1.8 million apps on the App Store, with 1.8 billion active devices in 175 regions. With 80% of small developers active in multiple app stores and 40% of downloads coming from outside the small developer’s home country, the App Store ecosystem drives global sales.
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