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An Apple-commissioned study says the App Store ecosystem facilitated ~$643B in billings and sales globally in 2020, up 24% YoY

Juli Clover / MacRumors :

MacRumors Juli Clover

Context & Ripple Effects

Apple had already established a baseline with its 2019 App Store commerce estimate of $519B. The 2020 figure extends that Apple-commissioned measurement into a second year, framing the store as an economic channel larger than its direct app transactions.

Later coverage continues the same reporting series, including an estimated $1.1T ecosystem total for 2022, making this report an early marker in Apple’s effort to quantify commerce associated with its platform.

First-order effects

  • Apple gains a higher year-over-year ecosystem-sales metric to support its account of the App Store’s value to developers, merchants, and service providers.
  • Businesses selling through apps or using the App Store to reach customers are counted within a broader commerce narrative, rather than only as sources of App Store commission revenue.

Second-order effects

  • The recurring use of ecosystem billings and sales shifts attention toward Apple’s wider commercial footprint, a measure that captures activity beyond paid app downloads and in-app purchases.
  • Competing mobile platforms face a more prominent benchmark for arguing that app-store distribution generates downstream commerce, not merely platform fees.

Third-order effects

  • If Apple continues publishing comparable commissioned studies, ecosystem commerce will become a durable metric in debates over the economic value and market power of app-store gatekeepers.
  • The series points toward platform competition being assessed increasingly through the transactions enabled by controlled distribution, alongside the revenue those platforms directly retain.

The trend: App-store operators are increasingly defining their strategic importance through the full commerce their platforms facilitate, not solely through the commissions they collect.

Discussion

  • @asymco Horace Dediu on x
    @AirWaterSnow @karaswisher @profgalloway Two thirds of the Apple economy does not involve Apple directly but operates on top of the platforms it built. The same worked for Microsoft and Google. Amazon is different as its entire economy transacts through Amazon.
  • @asymco Horace Dediu on x
    Apple developers grow total billings and sales in the App Store ecosystem by 24% to $643 billion in 2020. [My estimate was $648 billion, see graph attached.] https://twitter.com/...
  • @asymco Horace Dediu on x
    Apple still on track for $1 trillion ecosystem by 2023.
  • @asymco Horace Dediu on x
    Calculations show that by 2025 the Apple Economy (revenues + ecosystem) will reach $2 Trillion/yr. This is roughly today's market cap.
  • @alex @alex on x
    A TechCrunch-commissioned study recently discovered that I am the single most handsome human alive, so, there https://twitter.com/...