70% of App Retailer gross sales from prospects who play video games
According to a court ruling released Friday that concluded that Epic Games failed to prove Apple was a monopoly, revenue from Apple’s App Store consists almost entirely of users who play games.
According to the ruling, game apps account for around 70% of all revenue from the App Store. These 70% are generated by less than 10% of all App Store users, according to the court. In contrast, over 80% of all accounts generate practically no sales, since 80% of all apps in the App Store are free according to the document.
In January there were 1 billion active iPhones and 1.65 billion Apple devices in use worldwide.
Apple has cut 30% of its revenue from purchases of apps sold through the App Store for years. Developers have alleged that Apple’s App Store platform is unfair to smaller businesses, and last year Apple cut commission for apps with annual net sales of less than $ 1 million on its platform to 15%.
On Friday, Federal Judge Yvonne Gonzalez Rogers ruled the Epic-Apple trial and eventually issued an injunction stating that Apple cannot prohibit developers from providing links or other communications that distract users from Apple in-app purchases.
The injunction comes into force in December.
Apple does not disclose how much revenue its app store makes per year. Rather, the company publishes data points that include the total amount Apple has paid developers to since the App Store launched in 2008. According to a CNBC analysis, Apple’s App Store achieved gross sales of around $ 64 billion last year.
The company announced earlier this year that it has paid developers $ 200 billion since 2008, up $ 45 billion from January 2020.
– CNBC’s Kif Leswing contributed to this report.
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