Users Splurge Over $100 Billion on App Store Since its 2008 Debut

Drawing back the veil on the commercial success of the App Store, Apple recently announced that developers have pocketed over $70 billion from it. Ever wondered who got to keep the rest of the pie? Apple disclosed that, based on its standing 70/30 revenue sharing model, they themselves have raked in a staggering $30 billion, pushing the total user expenditure on the App Store to cross the $100 billion mark since its inauguration in 2008.

The tech behemoth further revealed that app downloads have skyrocketed, witnessing a 70 percent upturn over the preceding year. Riding the wave of this popularity, photo and video apps have chalked up a nearly 90 percent growth rate, registering their dominance in the market. Moreover, active paid subscriptions have soared by 58 percent year on year, only bolstering the commercial viability and appeal of the App Store for developers.

Highlighting the value of the App Store for developers, they were reported to have made an impressive $20 billion in 2016 alone, making it the most lucrative year for the App Store till date. This disclosure followed murmurs that Apple might be contemplating boosting the developers’ share to incentivize them to build more for the App Store. Rumors hint at a revised 85/15 split potentially being brought into effect between Apple and developers, which could shake up the industry significantly. Despite these potential changes, developers argue that it’s still onerous to launch paid services in the App Store due to high costs. As an outcome some services like Spotify have encouraged iOS users to drop their iTunes subscription and take up direct sign-up to circumvent the higher charges.

Apple’s annual Worldwide Developers Conference (WWDC) is due to kick off today, and as the tech world waits with bated breath, speculations are rife about a flurry of announcements including a possible new iPad design. Stay tuned for a comprehensive coverage of the event as it unravels.