Consumer Spending on App Stores Reaches Record Breaking $133 Billion in 2021

Plenty of people have started investing heavily into the app economy because of the fact that this is the sort of thing that could potentially end up allowing them to earn massive revenues each and every month. The growth that this industry has seen over the course of the past few years has been truly phenomenal, with records being broken on a more or less regular basis. 2021 has seen the industry soar to even greater heights.

There were 143.6 billion first time installs for apps this past year, which does not indicate significant growth. It’s only half a percentage point more than what apps saw in 2021, which might suggest that the number of new apps that customers can download is starting to taper off. With all of that having been said and now out of the way, it is important to note that consumers are still spending way more on apps than has ever been the case prior to this point in time.

Consumers spent a total of $133 billion on apps in 2021 which indicates a 19.7% increase from 2020. Hence, while first time installs are not growing at the rate that some might have preferred, the fact that consumers are spending more on apps means that they are quickly becoming accustomed to this process and the apps that are out there have much more earning potential with all things having been considered and taken into account. That can entice further growth in the industry since more major companies and entrepreneurs would want to start working within it.

Apple’s App Store continues to dominate in this regard, earning around 64% of the total revenue earned by apps in general including in-app purchase, premium subscriptions and a wide range of other revenue generating mechanisms. That means apps on the App Store earned over $85.1 billion, significantly more apps on the Google Play Store which earned just short of $48 billion. However, another thing to take into account is that Play Store apps have seen a bigger increase in revenues than App Store apps.

Play Store consumer spending saw an over 23% increase in consumer spending, whereas the App Store saw a much lower 17% increase. That’s why the App Store’s total share has dropped by a percentage point form 65% to 64%. Android is often bolstered by its popularity in developing countries because the vast majority of budget phones use Android exclusively, and this often results in Android based smartphones succeeding in those markets. It could also mean that people are starting to spend more on Play Store which is allowing it to finally start catching up to App Store profits.

Regardless of what may be the case, consumer spending is continuing to increase by leaps and bounds. While the 19.7% increase is lower than the 21% bump the industry saw last year, consumer spending is still on its upward trajectory and the easing of lockdowns and the like is not doing much to slow it down to any extent at all. The app that earned the most revenue is TikTok, signaling that this social media platform is dominating the market ahead of its better established competitors such as Facebook.
H/T: ST.

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