The App Store’s $406 billion in 2024 transactions breaks down into three key areas. Physical goods and services, like purchases through apps such as Amazon, DoorDash, and Uber, accounted for $277 billion. In-app advertising, a rapidly growing sector, contributed $75 billion, while digital goods and services, including subscriptions and in-app purchases, made up $53 billion. General retail led the categories with $146 billion, followed by grocery delivery, ride-hailing, food pickup, and travel apps, each generating tens of billions. According to AppleInsider, this shift reflects how users increasingly rely on their iPhones for shopping, logistics, and daily tasks.
This growth is no accident. The App Store’s infrastructure supports over 195 payment methods and 44 currencies across 175 storefronts, making it a seamless platform for global commerce. As Apple noted, the platform’s scale allows developers to reach users worldwide, with 54% of app downloads in 2022 coming from outside developers’ home countries. This global reach empowers small businesses and solo entrepreneurs to compete on a massive stage.
Apple’s Commission Model Under Scrutiny
The study emphasizes that Apple collects commissions on less than 10% of App Store transactions, primarily from digital goods like subscriptions and in-app purchases. Physical goods and services, which dominate the platform’s commerce, are exempt from Apple’s fees. For digital transactions, Apple charges a 30% commission, though smaller developers earning under $1 million annually qualify for a 15% rate through the Small Business Program. Subscriptions lasting over a year also benefit from this reduced rate. These policies, introduced in 2020 amid regulatory pressure, aim to support smaller developers, who saw their earnings grow by 71% between 2020 and 2022, outpacing larger developers.
However, Apple’s commission model remains a lightning rod for criticism. Regulators and developers argue that the 30% fee on digital purchases gives Apple excessive control over the app economy. The European Union’s Digital Markets Act, passed in 2022, forced Apple to allow alternative app stores by March 2024, though Apple’s compliance—requiring notarization and hefty financial guarantees for third-party stores—has drawn complaints. Posts on X reflect mixed sentiment, with some praising the App Store’s value to developers, while others, like one user comparing it to “feudal rent-seeking,” argue Apple’s control stifles innovation.
Why It Matters for Users
For the average iPhone user, the App Store is more than a place to download apps—it’s a gateway to managing daily life. From ordering groceries on Instacart to booking rides on Uber, the platform streamlines tasks with a secure, user-friendly experience. The study highlights how mobile commerce has surged, driven by apps that handle everything from retail to travel. With over 1.8 million apps available, the App Store offers unparalleled choice, supported by Apple’s tools like 40+ SDKs and 250,000 APIs, which help developers create seamless, innovative experiences.
The report also underscores the App Store’s role in job creation. A 2022 study by the Progressive Policy Institute found the iOS app economy supports 4.8 million jobs in the U.S., a number likely higher in 2024 given the platform’s growth. For users, this translates to a vibrant ecosystem of apps that cater to diverse needs, from small business tools like PocketSuite, which boosts user income by 30% in 45 days, to health apps like Rootd, which saw a 200% increase in billings after joining Apple’s Small Business Program.
A Strategic Move Amid Regulatory Heat
The timing of Apple’s report, just before WWDC 2025, is no coincidence. As regulators worldwide challenge Apple’s business model, the company is reframing the App Store as a driver of economic opportunity rather than a monopolistic gatekeeper. By highlighting that 90% of transactions are commission-free, Apple aims to counter narratives about its fees. Bloomberg notes this as part of Apple’s “biggest push” to reshape perceptions, especially as lawsuits and regulations, like those in the EU and U.S., threaten to upend its control.
Yet, the numbers tell a complex story. While Apple’s commissions—estimated at $36 billion in 2024 by analyst Gene Munster—represent just 9% of the App Store’s total commerce, critics argue the 30% fee on digital goods remains a significant burden for developers. Apple counters that its infrastructure, security, and global reach justify the cost, pointing to the platform’s 650 million weekly visitors and 747 million weekly downloads in 2022.
Looking Ahead
The App Store’s evolution reflects broader trends in how users interact with technology. As mobile commerce grows, apps are becoming central to everyday life, from shopping to managing small businesses. Apple’s study suggests the platform will continue to expand, potentially hitting new economic milestones by WWDC 2026. However, regulatory pressures could force changes, such as broader support for third-party app stores or lower fees, which might reshape the ecosystem.
For now, the App Store remains a cornerstone of Apple’s $1.29 trillion brand value, as reported by Kantar in 2025. For users, it’s a trusted hub that simplifies life, while for developers, it’s a platform that, despite controversies, offers unmatched access to a global audience. As Apple navigates this balancing act, the App Store’s role in driving commerce—and innovation—shows no signs of slowing down.
