Apple: Small app developer revenue has grown 71% over the past two years

Apple has released the results of a new study by the Analysis Group, which previously looked at the impact of the App Store small business program on developers. According to updated data “Small developers around the world” App Store revenue to grow by 71% between 2020 and 2022 Study covers “small” developers who make up to $1 million per year from fewer than a million downloads. Developers who don’t reach 1000 downloads per year are not counted.

The Analysis Group has done research for Apple more than once. For example, last April Apple touted the success of third-party apps in the App Store, citing a study by Analysis Group that claimed Spotify had 1.6 times more users than Apple Music and Netflix 17 times more Users as Apple Music Apple TV+.

Now Apple has issued a new press release with the findings of another study conducted by economists at the Analysis Group:

• In 2022, over 90% of developers in the App Store were “small” developers;
• In 2022, nearly 80% of small developers were active across multiple storefronts, and about 40% of their total app downloads came from users outside of the developer’s home country;
• Total small developer revenue on the App Store grew 71% from 2020 to 2022;
• Small developers of health and fitness, sports and lifestyle apps have more than doubled their sales in the last two years;
• Over 40% of App Store developers making over $1 million in 2022 had less than $10,000 in revenue five years earlier.

Apple’s efforts to boost the economic power of the app store come as the company continues to face antitrust scrutiny around the world over its policies on third-party app stores. Apple will reportedly be forced to open iPhone to third-party app stores in the European Union as part of the fall iOS 17 launch. This is required by the Digital Markets Act, which introduces a number of new requirements.

A survey conducted in April found that at least 60% of developers are interested in distributing their iOS apps outside of the App Store if given the opportunity. Apple is obviously trying to counter this by touting the success of the App Store for small businesses.