Apple's App Store growth is slowing, new data shows

Apple releases data every January on how much money App Store developers have earned since 2008. This allows analysts and investors to get an idea of how much money the App Store makes.

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This year's disclosure suggests that Apple's App Store growth has plateaued. This is likely due to the fact that there are now fewer new iPhone users than there were in the past, and that existing iPhone users are not downloading as many apps as they used to.
Apple has paid out $320 billion to developers since the App Store launched, with 70-85% of gross sales going to developers. This is up from $260 billion last year, an increase of $60 billion.

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If all developers paid a 30% cut to Apple, Apple’s App Store could gross over $85 billion in 2022, based on CNBC analysis. If Apple’s commissions were all 15%, the App Store’s estimated gross would be lower, around $70 billion.

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Apple has paid out $60 billion to developers in 2021, according to data from the company. This is the same amount of sales that Apple suggested last year.
This is a rough estimation that could vary because it is unclear how

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Apple has stated that attempts to extrapolate the size of the App Store business from developer earnings are inaccurate. This is because the commission ranges from 15% to 30%, and the vast majority of developers pay the lower commission under the App Store Small Business Program. This program gives a lower cut to app makers who gross under $1 million per year.

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Apple announced that its App Store had a record year in 2022, with 900 million subscriptions, up from 745 million the previous year. This includes any subscriptions to services through Apple's App Store, not just its own first-party services like Apple TV+ and Music.
App Store growth slowed last year, according to Tuesday's data. This is important for investors because the App Store is a major part of Apple's services business, and is a profit engine for the company.

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Apple's services business grew 14% in fiscal 2022 to $78.1 billion, a significant slowdown from the 27% growth rate the division posted in fiscal 2021.
Apple is facing tough comparisons to elevated 2021 and 2020 app use and sales as people bought games and software while riding out the Covid pandemic. The company is also facing consumer uncertainty around the world as interest rates rise and economists worry about a possible recession. According to Morgan Stanley analyst Erik Woodring, App Store net revenue has been declining for the past six months. However, his data shows that revenue started to grow again in December.

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Woodring predicts that app sales will grow in 2023 due to easier year-over-year comparisons, as well as increased prices for apps in international markets.
Woodring noted that while App Store growth remains near its lowest levels in history, the company is encouraged by the improving growth trajectory after bottoming out in September. He acknowledged that global consumers remain challenged, but said that the company is seeing positive signs of progress.