The number of jobs in the UK supported by Apple’s App Store grew by more than 10 per cent last year during the coronavirus pandemic, as the nation spent more time than ever on their electronic devices to work, entertain themselves and communicate with distant friends and family.
More than 330,000 developers create apps for the tech giant’s App Store in the UK, more than any other country in Europe, Apple said.
UK app developers’ earnings grew by 22 per cent in 2020 compared to the previous year, meaning the industry had generated more than £3.6bn in the UK to date, the company said.
The UK’s internet use climbed to an all-time high during the first national lockdown last year, as making video calls, tuning into live streams and watching clips on social media all surged in popularity among UK adults, regulator Ofcom said in June 2020.
Public Health England’s One You Couch to 5K, fitness plan app Fiit and sleep support app Sleepiest Sleep Sounds Stories were among the UK-based apps the nation relied upon to stay active and relax last year.
Busuu, a language learning app based in London, doubled the size of its workforce with 70 new hires made throughout 2020, and has plans to expand its team again by more than 50 per cent this year.
“As more people around the world turned to language learning during lockdown, we saw huge growth here at Busuu — it’s been fantastic to see more people join our community to learn together,” Bernhard Niesner, Busuu’s chief executive, said.
Similarly, mobile video game developer group Hutch Games, makers of the popular F1 Manager and Rebel Racing, hired 31 people last year, and hopes to hire between 30 and 40 new workers in 2021.
“In a year like no other, the UK has remained a vibrant and innovative hub for entrepreneurs and app developers,” said Christopher Moser, senior director of the App Store. “More people in the UK than ever before are working as part of the iOS app ecosystem, creating innovative and exciting apps enjoyed by people all over the world.”
The Competition and Markets Authority (CMA) said it was opening an investigation into the App Store earlier this month, following complaints that the iPhone maker’s terms are unfair for app developers.
Apple announced it was slashing the App Store commission rate for developers who take less than $1m (£720,000) in annual net sales on its platform from 30 per cent to 15 per cent in November last year.
The Competition and Markets Authority’s (CMA) investigation will consider whether Apple has a dominant position for distributing apps to its devices in the UK, and if it imposes unfair or anti-competitive terms on developers by charging them up to 30 per cent on the value of transactions made on the apps, ultimately leaving consumers with less choice or with products that are priced higher.
“We created the App Store to be a safe and trusted place for customers to download the apps they love and a great business opportunity for developers everywhere. In the UK alone, the iOS app economy supports hundreds of thousands of jobs, and any developer with a great idea is able to reach Apple customers around the world,” an Apple spokesperson said at the time.
“We believe in thriving and competitive markets where any great idea can flourish. The App Store has been an engine of success for app developers, in part because of the rigorous standards we have in place — applied fairly and equally to all developers — to protect customers from malware and to prevent rampant data collection without their consent. We look forward to working with the UK Competition and Markets Authority to explain how our guidelines for privacy, security and content have made the App Store a trusted marketplace for both consumers and developers.”
