Apple App Store Revenue Jumped 31% Last Quarter

A new report states that tech giant Apple enjoyed a massive 31 percent spike in App Store revenue year-over-year in Q3, jumping from $14.5 billion last year to $19 billion this year. TikTok has emerged as the highest-earning non-game app on both the Apple and Google app stores.

9to5Mac reports that a recent study from Sensor Tower has revealed that tech giant Apple saw its App Store revenue grow by 31 percent year-over-year in Q3, increasing from $14.5 billion last year to $19 billion this year. Apple rival Google saw its own Play Store revenue grow even faster with a 33.8 percent growth rate but only managed to generate a little over half of Apple’s numbers at $10.3 billion.

Sensor Tower stated that consumers being stuck at home due to the coronavirus pandemic appeared to boost revenue in relation to entertainment apps:

Last quarter’s greater than typical growth reflects COVID-19’s continuing impact on consumer spending in apps as well as a persisting lift in their adoption around the globe […]

Mobile game spending had previously surged in the second quarter as consumers around the globe sheltered in place and sought out more entertainment options. The third quarter also saw significant growth for the category, climbing 26.7 percent Y/Y to reach $20.9 billion in worldwide consumer spending on the App Store and Google Play. More than half of this revenue came from users on the App Store, which generated $12.4 billion from in-game spending, up 24 percent Y/Y from 3Q19. Games on Google’s platform generated $8.5 billion in gross revenue, reflecting 30.8 percent Y/Y growth.

TikTok took the top spot in both Apple and Google’s App Stores:

Despite being banned in its largest market [of India] and the threat of a similar fate in the United States, TikTok was the highest earning non-game app globally in 3Q20 in spending across both stores, including the iOS version of Douyin in China. The social video-sharing app translated its explosive popularity into a surge of consumer spending that grew 800 percent Y/Y when compared to 3Q19. This was its second consecutive quarter as the top-grossing non-game app.

Dating app Tinder saw its popularity fall as meeting in person became increasingly difficult during the pandemic, falling from the highest-grossing app in Q3 of 2019 to number three overall and number four on iOS.

Apple has faced criticism over its App Store fees recently, most prominently from video game developer Epic Games. Breitbart News recently reported on a recent interview in which Epic Games CEO Tim Sweeney explains why his company chose to wage war with Apple and Google. The developer of the popular Fortnite video game entered a legal battle with the tech giants last month over the 30 percent fee that they charge on purchases made in their mobile app stores.

“It’s not just Epic being exploited by Apple, but it’s every developer who goes along with that scheme colluding with Apple and Google to further their monopoly,” Sweeney said in the interview with NPR. “These stores are making a lot more money from creative works than the creators.”

Sweeney discussed why other developers haven’t taken issue with the 30 percent fees stating: “Everybody doesn’t have a great incentive to challenge Apple and Google’s 30% because they want to be the next bastard to charge 30%.”

Apple and Google have taken issue with Sweeney’s characterization stating that they have long charged the 30 percent fee for in-app purchases and the commission supports technical staff who make sure apps on iOS and Android are safe.

Sweeney, who himself is a veteran software engineer, called the justification offensive, stating: “Every Apple engineer who works on these services and ensures that iPhone is the most secure platform in the world has got to deeply resent the business guys for taking credit and claiming that their store monopoly is the reason why the platform is secure. It’s just not true.”

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