“Apple Inc. may rake in $3 billion in additional revenue over the next two years because of the runaway success of Pokémon Go, according to a new report from Needham analyst Laura Martin,” Jennifer Booton reports for MarketWatch.
“The company, which charges a fee to host apps on its App Store and pays itself a portion of the revenue spent on and within iOS apps, keeps roughly 30% of the money spent by users on Pokémon Go, she said,” Booton reports. “To give some perspective, Apple made $2 billion in the first two years of availability for another popular mobile game, Activision Blizzard Inc.’s Candy Crush Saga.”
“Apple might even make more money from the game than Nintendo at the moment,” Booton reports. “The Japanese videogame company owns just a 32% stake in the Pokémon Company, which jointly developed the game with Niantic Inc., a spinoff of Alphabet. CLSA analyst Jay Defibaugh said last week that Nintendo may receive ‘little direct profit’ from the game, given its minor stake.”
Read more in the full article here.
MacDailyNews Take: Services.
We have developed a very large and profitable business in the Services area… The purchase value of the installed base services grew by 27% during the quarter, which was an acceleration over the previous quarter. And the value of it hit just – or was just shy of $10 billion. And so it’s huge… — Apple CEO Tim Cook, April 26, 2016