In 2020, Apple's App Store generated 28 percent more revenue as compared to 2019

Apple revealed that the App Store has generated a record-breaking revenue of $540 million in a single day on New Year’s Eve. Today, a recent CNBC report provides further information predicting that App Store have made revenue of over $64 billion just in 2020.

The result from CNBC report shows that as compared to 3.1 percent growth of App Store in 2019, App Store sales increased by 28 percent more throughout 2020. In 2019, App Store made $50 billion and $48.5 billion earned in 2018. According to Apple, from Christmas Eve till the end of December 2020, surprisingly Apple generated revenue of $1.8 million at its App Store either by digital products or its facilities.

Although, Apple did not disclosed App Store revenue in precise sales figure generated in the first quarter. Rather, Apple revealed the revenue as ever-growing Apple service, according to which App Store generated $53.7 billion in Apple's fiscal 2020.

Instead of revealing the revenue generated per year, Apple shared data points including payment that Apple has given to the developers since the App Store has launched. Through the data points provided by Apple, it is possible to roughly estimate the sale made by Apple each year.

Before CNBC's recent article, a number of other studies suggested that COVID-19 is the reason behind the significant growth of App Store in 2020. Due to the lockdown, people were restricted to work from home which indicates that dependency on apps increases resulting in greater usage of App Store apps. Video conferencing and meeting apps are the most downloaded apps in 2020. Other than these, gaming apps contribute majorly in generating greater revenue.

Recently, Apple is being pressurized for taking 30 percent share of developers from App Store revenue. To solve this issue, Apple announced that they are going to launch another small business App Store. From where, 15 percent share will be given to developers whose earnings are less than $1 million per year. On 27th, January 2021, Apple will share its fiscal Q1 2021 sales covering the record-breaking holiday sales.

Photo: ymgerman via Getty Images
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