Apple’s App Store becomes $2 trillion business, making Aussie company Procreate millions

The tech titan’s App Store has become multitrillion-dollar business, with more than $2 trillion in developer billings and sales flowing through the platform, with one Australian company earning $32m.

Procreate founder Jame Cuda’s company Savage Interactive made about $32m in earnings before interest, tax, depreciation and amortisation last year. Picture: Zak Simmonds

Apple’s App Store is soaring in popularity, with more than $2 trillion in developer billings and sales flowing through the platform.

Ahead of its annual World Wide Developer Conference at its headquarters in Cupertino next week, Apple released a report that revealed spending on the platform had more than doubled in the past six years.

Audrey Fradkin from Boston University and Jessica Burley from Analysis Group completed the report, which showed the App Store facilitated $US1.3 trillion ($2 trillion) in developer billings and sales last year.

Sales of physical goods and services exceeded $US1 trillion, with Professor Fradkin and Dr Burley citing rising demand for online food delivery and pick-up on platforms such as Uber Eats.

Developer billings for digital goods and services totalled $US131bn, and in-app advertising revenue generated $US150bn.

Apple CEO Tim Cook said: “It’s incredible to see so many developers design great apps, build successful businesses and reach Apple users around the world.

“This report is a testament to the many ways developers are enriching people’s lives with app and game experiences, while creating opportunity and driving new innovations.”

For more than 90 per cent of billings and sales, developers did not pay Apple a commission.

The commission Apple charges has been the focus of a blockbuster court case between Apple and Fortnite maker Epic Games, which has accused the tech titan of abusing its market power by charging 30 per cent of all money made on mobile apps and not ­allowing their own payment ­services. Other developers have used the App Store to become global powerhouses, like James Cuda, who founded Adobe challenger Procreate a decade ago.

Apple CEO Tim Cook says ‘It’s incredible to see so many developers design great apps, build successful businesses and reach Apple users around the world’.

According to the App Store report, spending across all three categories – digital goods and services, physical goods and services, and in-app advertising – has more than doubled since 2019.

Originally published as Apple’s App Store becomes $2 trillion business, making Aussie company Procreate millions