Here’s How Powerful The iOS App Store Really Is

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I think you’ve heard from the media that the Apple App Store generates a lot of money but do you know just how much that is? Well, it turns out that the Apple App Store pulls in $85 billion worth of revenue every single year out of which Apple gets $20 to $25 billion. Historically, Apple has boasted App Store margins of up to 78% meaning that Apple profits nearly $20 billion from the App Store every single year. If the App Store was a standalone business, it would be worth $460 billion on its own which would make it the world’s 15th largest company. And that’s not too surprising when you consider that $85 billion is just the amount that gets processed by Apple. When we look at the total of transactions enabled by the App Store, we’ll get a much larger of $1.1 trillion. For perspective, that would make the Apple App Store the 17th largest country in the world by GDP. This video explains the intricacies of App Store monetization and how powerful the Apple App Store really is.

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Timestamps:
0:00The App Store
1:52Accidental Invention
4:31The Apple Way
8:07The Apple Tax

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Logically Answered is centered around explaining the economics of tech and social media. These sectors are generally analyzed through the lenses of finance and economics to determine which industries and companies will thrive and which will fall. In addition to this analysis, the content is often focused on the stories of various famous entrepreneurs such as Elon Musk, Steve Jobs, and Jeff Bezos. Logically Answered also cover the rise and fall of several interesting companies and services that we come across on a daytoday basis. There have been so many companies that have risen to fame and then died out in a single generation. The most interesting companies are the ones that were able to save themselves and avoid bankruptcy. Feel free to follow the podcast if you would like to see any of these topics Logically Answered.

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