Apple-sponsored study shows growing success of small developers on App Store

According to a study conducted by Analysis Group, small developers on the App Store have seen significant growth in revenue over the past two years.

Small developers, which make up more than 90% of all developers on the platform, saw their revenue increase by 71% between 2020 and 2022, with earnings in the US growing by 83%.

The study defines small developers as those who have fewer than a million annual downloads and earn up to $1 million per year.

The report highlights the opportunities provided by the App Store, such as tools that help developers reach a global audience, with close to 80% of small developers active on multiple storefronts and earning 40% of total app downloads from outside their home country.

The study also shows that revenue growth for small developers outpaced that of large developers, with earnings improving across all app categories.

Furthermore, the study suggests that many apps earning over $1 million in 2022 started out as apps from small developers. In fact, 40% of these developers were either not on the App Store or had less than $10,000 in earnings five years ago.

Apple is under increasing pressure to allow sideloading and alternative app store options, and the European Union has required the company to allow apps to be installed outside of the App Store, a feature that Apple is rumored to be implementing in Europe in iOS 17.

In the US, government officials are also considering legislation that would allow developers to use non-Apple app stores and alternative in-app payment systems on iOS devices.

Apple has been fighting these changes, and studies like this one from Analysis Group can be used to convince regulators and the public of the benefits of the App Store.