Apple App Store reported $ 50 billion in revenue last year, breaking 100 million

Technology giant Apple released its service business data annual report on its official website on Wednesday, January 8th, which focused on the use of products such as the App Store, Apple News, Apple Music, and Apple Music.

Since 2013, Apple has released statistics on the App Store in January every year, and analysts have been able to estimate the total annual revenue of the App Store from the amount Apple paid to application developers.

Taking 2019 as an example, Apple announced today that it has paid a total of US $ 155 billion to App developers since the App Store was established in 2008, and the cumulative payment disclosed by the company in January 2019 was the US $ 120 billion. This represents a total of $ 35 billion paid to developers in 2019. According to a rough calculation of 70% of the app store revenue obtained by developers, last year App Store revenue was about $ 50 billion.

According to the media, the annual sales of 50 billion US dollars is enough to make the Apple App Store ranked 64th among Fortune 500 companies, ahead of Cisco and behind Morgan Stanley. However, the App Store’s revenue growth rate is slowing down, and the amount paid to developers in 2019 is 2.9% higher than the $ 34 billion in 2018, far behind the 2017 growth rate of 30%.

Apple said that the App Store is the world’s most secure and diverse App market platform, with more than 500 million visits every week. From Christmas Eve on December 24, 2019, to the eve of Yen on December 31, 2019, consumers spent $ 1.42 billion in the App Store, a year-on-year increase of 16%; on January 1, 2020, they spent $ 386 million, a year-on-year increase. Soared 20% and hit a single-day high.

The rule of the Apple App Store is that if a user purchases an app for a one-time consumption, Apple will draw 30% of the sales revenue of the App, and if it is a regular subscription behavior, Apple will draw 15% of the sales revenue of the App in the second year. Due to the relatively small amount of 15% of the App, the market generally estimates Apple’s income based on the 30%, and the app store will generate about 15 billion US dollars for Apple in 2019.

In addition, Apple also announced that the news service Apple News has captured more than 100 million monthly active users in the United States, the United Kingdom, Canada and Australia, an increase of nearly 18% from 85 million a year ago.

However, the company did not disclose subscription data for Apple News +, a paid version of the news and newspaper service that costs $ 9.99 a month, nor did it announce the specifics of Apple TV +, a video streaming service just launched in 2019, Apple Arcade, a gaming platform, and a Gold Card credit card Apple Card Subscribe and use data.

In terms of other data, 50% of Apple Music users have used the lyrics synchronization feature launched in 2019, and the streaming music service can provide more than 10 million songs; Apple Podcasts has more than 800,000 shows; 75% of iCloud users Using two-factor authentication to log in makes it more difficult for attackers to control user accounts and so on.

Eddy Cue, Apple’s senior vice president of Internet software and services, said in a statement that the services business set a company record last year. Apple will continue to focus on the deep integration of hardware, software, and services. All platforms will reach new highs in 2019, showing the “2020s” Incredible “growth momentum.

The analysis pointed out that with the decline of iPhone and other hardware sales revenue, the service business is becoming the next growth point that investors pay close attention to, and Apple is also constantly highlighting the development opportunities of this business. In the company’s fiscal year ending at the end of September 2019, Apple’s overall service revenue increased 16% year-on-year to US $ 46.3 billion, while the revenue of the mobile phone sector fell 14% year-on-year to the US $ 142.4 billion.

However, driven by the 5G strategy, Apple’s iPhone sales revenue in 2020 is again optimistic about Wall Street. Dan Ives, a technology analyst at Wedbush, a brokerage firm, predicts this week that Apple’s stock price will rise to about $ 400 by the end of the year, 33% higher than Monday’s closing price of $ 299.8, citing “the highly anticipated September 5G upgrade cycle is coming.” User needs will remain healthy.

Apple fell 0.4% in early trading on Wednesday, then tried to turn up, and eventually rose 1.61% to close at $ 303.19 and hit a record high of $ 304.44 during the session. In the just past 2019, Apple’s stock price has risen by 86%, the largest annual increase in ten years.

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