Study sheds light on impact of physical good at Apple’s App Store

According to the results of a Apple-backed study, which for the very first time sought to quantify activity at its AppStore which does not produce a commission for Cupertino, it was found that the App Store spurred $458 billion in sales in 2019 from categories which includes retail of physical goods, ride-hailing and advertising.

For Apple, commissions from its App Store have become a key sales driver for Apple as the sales of its flagship phone level off.

The study suggests that the App Store has a broader impact.

In 2019, Apple’s App Store generated $519 billion in billings and sales of which $413 billion came from physical goods and services. In-app advertising brought in $45 billion while the balance 15% came from overall App Store activity.

Digital goods and services, including video subscriptions, music and in-app purchases in games, racked in nearly $63 billion.

Apples takes a 15% to 30% cut for digital goods and services purchased through its App Store. The practice has attracted antitrust scrutiny in Europe as well as in the United States following rivals, including Spotify Technology Ltd, complaining that the practice hurts its business.

In a conference call with journalists, representatives from Apple said, it commissioned the study to gain a more complete view on the aspects of the activity of physical goods and services in its App Store.

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