The Apple App Store generates $ 1B per week

On average, Apple generated more than $ 1 billion a week from more than half a billion people who visited its App Store every week in 2019, according to new data.

That is $ 54.2 billion in the year.

Chasing the tail (long)

There are many reasons for this, mainly a successful push towards subscription-based business models and a growing consumer acceptance that there really is value in digital products.

This renaissance in digital engagement is also generating new opportunities for companies that seek to meet customers where they are with the first digital experiences.

Subscription revenue increased in 2019, with more developers offering users to test their applications before paying for the full set of features, according to SensorTower data. Increasing subscription revenues show that buyers will pay monthly fees for applications.

Cultivating this type of perception has been one of the great challenges for the technology industry. In the early years, Napster’s success and file sharing showed what can happen to industries when people do not value digital products.

The subsequent success of iTunes, Spotify, Netflix, Amazon Prime and services such as iCloud and Dropbox helped most users recognize the digital value.

Now it is generating massive money. User spending on the App Store increased 16% year-over-year from $ 47 billion in 2018. The games accounted for a powerful $ 37 billion of this, while entertainment applications accumulated $ 3.9 billion more.

Copyright © 2020 IDG Communications, Inc.

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