Apple-backed study sheds light on physical sales through App Store

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Apple-backed study sheds light on physical sales through App Store
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Apple Inc on Monday released the results of a study that found its App Store spurred $458 billion in sales last year from categories such as retail of physical goods, ride-hailing and advertising from which the iPhone maker takes no commission.

The study, backed by Apple, marks the first time the company has sought to quantify App Store activity that does not produce a commission for Apple. Commissions from the App Store, which is the only way developers can distribute apps to iPhones owned by consumers, have become a key sales driver for Apple as iPhone sales level off.

The study found $45 billion came from in-app advertising. The remaining 15% of overall App Store activity - about $63 billion - came from digital goods and services such as music and video subscriptions or in-app purchases in games. To avoid paying Apple’s commissions, rivals like Spotify must ask their customers to sign up for subscriptions on their own website, which adds multiple extra steps compared with paying inside the App Store. Spotify has alleged that created an uneven playing field.

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