Apple Consumers And Advertisers Spent More Than $500B At The App Store In 2019

Billings and sales of $519 billion were made globally on Apple Inc.’s (NASDAQ: AAPL) App Store in 2019, according to a study conducted on behalf of the company. 

What Happened

The Analysis Group, a Boston-based economic consulting firm, studied transactions involving Apple, such as paid apps and in-app purchases, as well as the sale of advertisements in apps.

According to the results of the study disclosed Monday, of total sales, physical goods and services accounted for $413 billion, digital goods and services for $61 billion, and in-App advertising –– $45 billion.

In the largest physical goods and services category, the vast majority of sales were dominated by mobile commerce apps, of those retail app sales stood at $268 million. 

Retail apps include traditional stores, such as Target Corporation (NYSE: TGT) and Best Buy Co Inc. (NYSE: BBY), as well as e-commerce stores like Etsy Inc. (NASDAQ: ETSY). Grocery sales are not included.

The travel apps, including Expedia Group Inc.(NASDAQ: EXPE) and United Airlines Holdings Inc. (NASDAQ: UAL), accounted for $57 billion, while ride-hailing apps from Uber Technologies Inc. (NYSE: UBER) and Lyft Inc. (NASDAQ: LYFT) made up for $40 billion in sales. The food delivery apps of DoorDash and Grubhub Inc. (NYSE: GRUB) registered sales of $31 billion.

Why It Matters

Apple’s cut from purchases of digital or software goods from the App Store stands between 15% and 30%.

The tech giant had previously revealed that 84% of the apps on its store did not share any revenue with the company. Such apps include free apps, ad-supported free apps and subscription-based apps.

Price Action

Apple shares traded 0.82% higher at $345.79 in the after-hours session on Monday. The shares had closed the regular session 1.24% higher at $342.99.