This followed a quarter in which Apple Inc. announced spectacular growth in its revenue from the U.S. App Store. In 2024, the company took in upwards of $10.1 billion in commissions. This marks a substantial rise from the $4.76 billion the tech giant made in 2020, showcasing a steady growth trajectory over the years. The development and distribution company’s success has been driven by both app and game sales. In turn, app developers earned an astounding $33.68 billion in gross revenue during this period and pocketed $23.57 billion in net revenue.
Such a rapid revenue growth is no doubt indicative of the continued appetite for Apple’s App Store commissions to grow ever upward. In 2020, the publicly traded company made $4.76 billion. Those profits nearly doubled to $6.66 billion in 2021 and increased to $7.37 billion in 2022. In 2023, Apple went even further in this direction with a spectacular $8.75 billion.
Diversified Revenue Streams From Apps and Games
In 2024, apps made a record $6.27 billion just in their commissions alone. Games contributed a remarkable $3.82 billion to the total revenue. This diversified income stream underscores how critical both app categories have become to Apple’s long term financial success.
In addition to its App Store revenue, Apple receives approximately $20 billion annually from Google for setting its search engine as the default on Safari. This strategic partnership not only strengthens Apple’s cash position but provides additional firepower to invest in services and augmented/virtual reality technology.
Legal scrutiny continues to follow Apple over its App Store practices. A recent court decision found many of Apple’s historical practices as monopolistic. In the end, the court required Apple to permit developers to add outside payment links into their apps without being required to pay any commissions. With direct ramifications on the company’s revenue model moving forward, this ruling would be a monumental shift.
Eddy Cue, Apple’s Senior Vice President of Services, has emphasized the company’s commitment to fair practices and compliance with legal directives while continuing to innovate in its offerings.
“A federal court cannot force Apple to permanently give away free access to its products and services, including intellectual property.” – Apple
So now Apple is reportedly more closely considering alternatives to its Google search engine partnership. The company is rumored to be jumping into AI-powered search technologies. Such a shift would be a welcome strategic pivot. The company is making huge strides within the regulatory environment as it changes and it’s adjusting to shifting, disruptive consumer desires.
What The Author Thinks
Apple’s impressive revenue growth from the U.S. App Store highlights the company’s continued dominance in the digital ecosystem. However, its reliance on commissions from apps and games may face challenges due to ongoing legal scrutiny. The potential shift toward AI-powered search technologies signals a strategic move to diversify its revenue streams and reduce dependence on Google, which could reshape the company’s competitive landscape. Apple’s ability to adapt to evolving consumer demands and regulatory pressures will determine the future trajectory of its services division.
