How the App Store Is Becoming Increasingly Important for Apple



Net revenue rises 60% year-over-year in 2016

Sensor Tower’s report states Apple’s (AAPL) App Store revenue (excluding games) rose 60% YoY (year-over-year), from $3.4 billion in calendar 2015 to $5.4 billion in calendar 2016. Overall revenue for the App Store stands at $8.7 billion. In comparison, revenue for Google Play (GOOG) (GOOGL) rose 82% to $3.3 billion last year.

Music streaming company Spotify generated the most revenue (excluding games) last year, followed by Netflix (NFLX), messaging app LINE, Pandora (P), and HBO NOW.

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Apple paid $20 billion to developers

Earlier this month, Apple announced that it paid $20 billion to developers last year. The App Store’s subscription billings rose 74% YoY to $2.7 billion in 2016. New Year’s Day was the biggest for the App Store in terms of revenue, with customers spending $240 million on apps and in-app purchases.

Apple’s services segment is now the second largest in terms of revenue for Apple. The services business segment accounted for 24% of total revenue in fiscal 4Q16. In July last year, Apple CEO Tim Cook stated that he expects the company’s services segment to be as big as a Fortune 100 company in calendar 2017.


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