Apple App Store Developer Payouts in 2021

Apple Reports Record App Store Growth in 2021

Despite ongoing antitrust challenges and increased regulatory oversight in several markets, Apple has announced record growth for the App Store during 2021. A recent press release detailed that over $260 billion has been distributed to app developers since the App Store’s inception in 2008.

This figure represents a significant increase compared to the $200 billion reported at the close of 2020. Consequently, developers received at least $60 billion from Apple throughout 2021 alone.

Payout Increases Over Time

The amount paid to developers has risen substantially in recent years. By the end of 2019, cumulative payouts totaled $155 billion, up from approximately $120 billion the year before.

This indicates a $35 billion increase from 2018 to 2019, followed by a further $45 billion growth from 2019 to 2020.

However, the overall economic health of the App Store is becoming less transparent as the percentage of revenue retained by individual apps fluctuates.

Commission Structure Adjustments

Apple has modified its commission structure in response to regulatory scrutiny, antitrust concerns, and legal disputes, including the ongoing case with Epic Games, which is currently under appeal.

The introduction of the Small Business Program in November 2020 lowered the commission rate to 15% for eligible apps earning up to $1 million annually.

Furthermore, in 2021, Apple reduced commissions for certain news publishers participating in the Apple News Partner Program.

While Apple has not disclosed the number of developers and publishers utilizing these programs, it states that a “vast majority” of apps qualify for the reduced commission.

Holiday Spending and Limited Data

Apple highlighted that App Store customers spent “more than ever” between Christmas Eve and New Year’s Eve in 2021, resulting in double-digit growth compared to the previous year.

However, the company refrained from providing specific figures, unlike in 2020 when it reported $1.8 billion in spending on digital goods and services during the same period, largely driven by game purchases.

A Year of Transition

2021 proved to be a period of change for the App Store.

Developers have voiced increasing concerns regarding App Store scams, which were addressed during a Congressional hearing. Challenges with the App Review process also persisted.

Initially, Apple was ordered to allow links to third-party payment options due to the Epic lawsuit ruling, but this order was temporarily suspended pending appeal.

Additionally, Apple has been compelled to ease its control over the App Store in markets like Japan and South Korea, where regulators mandated links to external websites and limited commissions.