Apple's App Store ecosystem in China hits $519 billion in developer sales

Apple's App Store ecosystem in China generated ¥3.76 trillion ($519.2bn) in developer billings and sales last year, with developers retaining over 95% of the revenue. 

As reported by Yicai Global, this marks a significant increase from ¥1.65 trillion ($226bn) in 2019. Apple disclosed the figures for the first time based on a report by Ju Heng, an associate professor at Shanghai University of Finance and Economics.

The report shows that more than half of developers who paid commissions last year benefited from a reduced 15 percent rate, and the App Store never charged commissions on in-app advertising revenue. 

Apple has pressured companies like Tencent Holdings and ByteDance to close external payment loopholes in their apps. It warned Tencent that it would reject future updates to WeChat unless the company removed the ability for developers and users to bypass Apple's ecosystem. Neither companies have responded.

Regulatory and commission challenges 

Apple's 30 percent commission rate on the App Store has remained consistent since its inception,  though due to local regulations, different charging policies apply in the US, South Korea, and the European Union. 

The "Apple tax" on digital content purchases has sparked global controversy, with the company earning $22.3bn in commissions last year, according to Sensor Tower. 

Since 2021, developers in several regions, including the US, South Korea, and Japan, have sought to reduce or bypass these fees. Some jurisdictions have launched antitrust investigations to challenge Apple's commission structure.

The UK's Competition and Markets Authority (CMA) is investigating Apple and Google's mobile ecosystems for potential anti-competitive behaviour. Meanwhile, consumer group Which? is suing Apple for £3 billion, claiming it locked UK customers into costly iCloud fees.