Apple's US App Store Drives $406 Billion in Developer Sales in 2024

Apple has revealed that its U.S. App Store ecosystem generated a staggering $406 billion in developer billings and sales in 2024, a figure that nearly triples the $142 billion reported in 2019. This growth underscores the App Store’s expanding role as a critical marketplace for developers across the country.

One of the most striking details from Apple’s report is that 90% of the billings and sales facilitated by the App Store involved no commission fees paid to Apple. This is largely due to programs like the Small Business Program, which reduces commissions from the standard 30% to 15% for developers earning less than $1 million annually.

Apple’s report also highlights how earnings for U.S.-based developers have more than doubled over the past five years. Small business developers, in particular, have seen a 76% increase in earnings from 2021 to 2024, reflecting the impact of Apple’s targeted support initiatives.

The report breaks down the $406 billion into categories, showing that $277 billion came from physical goods and services, $75 billion from in-app advertising, and $53 billion from digital goods and services. Since 2019, spending on physical goods and services has more than tripled, while in-app spending and advertising have more than doubled.

Despite these successes, Apple faces ongoing legal and regulatory challenges. A recent court ruling forced Apple to allow developers to include links to external payment options, bypassing Apple’s commission system. Apple is currently appealing this decision, highlighting the tension between platform control and developer autonomy.

Apple emphasizes that the App Store provides developers access to a global market spanning 175 countries and regions. It also highlights the platform’s security measures, noting that it blocked $2 billion in fraudulent transactions in 2024 alone, and $9 billion over the past five years.

Additionally, Apple invests heavily in developer tools, offering over 250,000 APIs through frameworks such as HealthKit, Metal, Core ML, MapKit, and SwiftUI. These resources empower developers to create innovative, high-quality applications that enhance user experiences across Apple devices.

The Developer Perspective and Industry Impact

While Apple credits the App Store as the foundation for developers’ success, many in the developer community express frustration over commission fees and platform restrictions. Developers argue that their innovations have been instrumental in the iPhone’s success and seek greater recognition and more favorable terms.

This ongoing debate reflects broader industry tensions between platform owners and app creators, raising important questions about fairness, competition, and the future of digital marketplaces. As Apple prepares for its Worldwide Developers Conference, these issues remain front and center for both the company and its developer community.