Apple’s App Store generates $1B a week

On average, Apple generated more than $1 billion a week from the half-billion-plus people visiting its App Store every week in 2019, new data shows.

That’s $54.2 billion in the year.

Chasing the (long) tail

There’s lots of reasons for this, principally a successful push toward subscription-based business models and rapidly growing consumer acceptance that there actually is a value in digital products.

This renaissance in digital engagement is also generating new opportunity for enterprises who seek to meet customers where they are with digital-first experiences.

Subscription revenues increased in 2019, with more developers offering to let users try their apps before paying for the full feature set, according to SensorTower data. Growing subscription revenues prove shoppers will pay monthly fees for apps.

Nurturing this kind of perception has been one of the big challenges for the tech industry. In the early years, the success of Napster and file-sharing showed what can happen to industries when people don’t value digital product.

The later success of iTunes, Spotify, Netflix, Amazon Prime and services like iCloud and Dropbox helped most users recognize digital value.

Now it’s generating massive money. User spending at the App Store climbed 16% year-over-year from $47 billion in 2018. Games accounted for a mighty $37 billion of this, while entertainment apps hoovered up $3.9 billion more.

Copyright © 2020 IDG Communications, Inc.

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