Apple has paid out almost $30bn to iPhone app makers over the past year, it announced on Monday, bringing developers’ total earnings from the first decade of the app store to $100bn. Tim Cook, Apple’s chief executive, announced the milestone as he opened the company’s Worldwide Developers Conference in California, where he also announced that the next version of the iPhone’s operating system would be focused on performance improvements. Revenue from online services is a key area of growth for the world’s most valuable company as smartphone sales growth slows across the tech industry. The app store, which was launched in 2008, a year after the iPhone’s debut, now had 500m weekly visitors, Apple said on Monday. “In its 10 years, the App Store has fundamentally changed the way we all live,” Mr Cook said, creating tens of millions of new jobs in the process. This week, total developer earnings from the App Store would hit $100bn, up 42 per cent from last year’s $70bn figure. Apple’s payout to developers has doubled since 2016, when it reported $50bn in earnings. Apple typically pays out 70 per cent of an app’s purchase price or the same amount of an in-app purchase, such as power-ups in a game, with the iPhone maker keeping a 30 per cent commission. For apps that charge a subscription, such as Netflix or Spotify, Apple reduces its commission to 15 per cent after the first year. Also at Monday’s WWDC opening keynote, Apple said that iOS 12 would bring a range of performance improvements, such as opening apps faster and improving battery life. Over the past year, Apple has faced criticism over poor battery life for older devices, prompting a low-cost battery replacement programme. This year’s iOS update will be made available to older-than-usual iPhones, dating back to the 5S model launched in late 2013. “For iOS 12 we are doubling down on performance,” said Apple’s software development chief, Craig Federighi. “Top to bottom — to make your device faster and more responsive.” iOS 12 will also see updates to photo sharing in iMessage
Apple estimates $100bn paid to developers over decade
