In a groundbreaking study, Apple’s App Store has demonstrated its significant impact on the Indian economy, generating an impressive Rs 44,447 crore (approximately $5.31 billion) in billings and sales for 2024. This research, conducted by Professor Viswanath Pingali from the Indian Institute of Management Ahmedabad, reveals that a staggering 94% of the revenue went directly to developers and businesses, with no commission owed to Apple.
Surge in Developer Earnings
The findings further highlight a remarkable trend: the earnings of developers in India have tripled in recent years. The breakdown of billings reveals that the sale of physical goods and services accounted for Rs 38,906 crore, followed by in-app advertising at Rs 3,014 crore and digital goods and services at Rs 2,527 crore.
Tim Cook, Apple’s CEO, expressed his excitement about these results, stating, "The App Store has been an economic miracle for developers in India and around the world. This study underscores the vitality of India’s vibrant app ecosystem, and we’re dedicated to supporting developers of all sizes as they create impactful applications."
Breakdown of Sales Contributions
The category of physical goods and services primarily reflects the revenue generated through popular e-commerce platforms like Nykaa and Blinkit. Notably, within this segment:
- General retail dominated with 39%
- Travel accounted for 26%
- Food delivery and pick-up made up 9%
- Grocery was 7%
- Ride-hailing services represented 6%
Global Reach of Indian Developers
Intriguingly, nearly 80% of the earnings from India-based developers stemmed from international users. The study indicates that 87% of these developers operate across multiple storefronts, which are tailored to different regions. In 2024, Indian apps were accessible in 175 storefronts worldwide, showcasing their expansive reach.
The research also identified the top five categories experiencing the most significant earnings growth from 2019 to 2024:
- Finance
- Health and fitness
- Lifestyle
- Utilities
- Games
Impressive Download Growth
The popularity of Indian-developed apps surged, with downloads doubling to 755 million in 2024 compared to five years prior. Furthermore, applications from India consistently ranked among the top 100 most-downloaded apps in 70 international storefronts, reflecting the global appeal of these products.
Support for Small Developers
The study also highlighted that small developers saw a 74% increase in App Store earnings from 2021 to 2024. This growth was largely driven by the App Store Small Business Program, which offers reduced commission rates, thereby enhancing opportunities for smaller players in the market.
In a bid to uphold the integrity of the platform, Apple has reportedly prevented over $7 billion in potentially fraudulent transactions between 2020 and 2023, including more than $1.8 billion in 2023 alone. Additionally, the App Store has maintained high standards by rejecting over 1.7 million app submissions that did not meet privacy, security, and quality criteria.
This study serves as a testament to the transformative role of the App Store in fostering innovation and economic growth among developers in India and globally.
