Apple reported that its App Store generated over $26.5 billion in revenue for developers in 2017, which was up about 30% year over year. This means that the App Store created approximately $11.5 billion in revenue for the company. Growth of Services revenue is one of the major positive points for investors since it is growing faster than the rest of the company with higher margins. 

Below is an analysis of Apple’s App Store revenue that can be gleaned from the past four press releases providing App Store data. Note that when I use words such as over or nearly they are from the press releases and when I use about or approximately they are based on calculations I have done from the numbers in them.

Calendar 2014

• Total spending in the App Store was approximately $15 billion

• Developers received over $10 billion in revenue

• Apple’s revenue was about $4.5 billion

• The first week of January generated nearly $500 million in billings

• January 1st was the largest day

Calendar 2015

• Total spending in the App Store was over $20 billion

• Cumulative developer revenue reached nearly $40 billion since 2008 with over one-third in 2015

• Developers received about $14 billion in revenue, up approximately 35% year over year

• Apple’s revenue was about $6 billion, up about 33% year over year

• The two weeks ending on January 3, 2016, generated $1.1 billion in spending

• January 1st saw $144 million in total spending

Calendar 2016

• Total spending in the App Store was just shy of $30 billion

• Developers received over $20 billion for the year and now over $60 billion since 2008

• Apple’s revenue was about $8.8 billion, up 49% year over year

• Developer’s and Apple’s revenue have both almost doubled in two years

• January 1st had nearly $240 million spent that day ($72 million to Apple)

For calendar 2016 the App Stores $8.8 billion in revenue was about 4% of the company’s $216 billion in total revenue and a third of the $25 billion in Services revenue. The almost $3 billion increase in App Store revenue made a small dent in Apple’s total revenue drop of about $18 billion. However if it continues to increase at the same rate it does add almost 1.5 percentage points to the company’s total revenue growth for the next few years.

Calendar 2017

• January 1st had $300 million spent that day, up 25% year over year

• $890 million spent over the 7 days from Christmas Eve to New Years Eve

• Developers received $26.5 billion for the year, up 30% year over year, and is now over $86 billion since 2008

For calendar 2017 the App Stores approximate $11.4 billion in revenue was almost 5% of the company’s projected $237 billion in total revenue and over a third of the $31 billion in forecasted Services revenue.

Source: Forbes