Apple’s App Store revenue on track to eclipse global box office revenue this year

“For years, the iPhone has been Apple’s cash cow, propelling the company to record revenues and transforming it into one of the most valuable companies in the world,” Christina Bonnington reports for Slate. “Apple’s financial landscape may be evolving, though. ”

“Luckily, Apple’s not purely a hardware manufacturer. It built a second revenue stream straight into the iPhone experience: the App Store,” Bonnington reports. “The App Store seems to have had its best year ever. Over the holiday season, App Store users spent $890 million on downloads and in-app purchases, with a record $300 million spent this New Year’s Day alone. For 2017 as a whole, App Store revenue increased 35 percent over 2016, to a total of roughly $38.5 billion, according to information from the data insights firm Sensor Tower. At its current trajectory, App Store revenue will eclipse global box office revenue this year.”

“In its first few years, App Store popularity—in terms of purchases and profits—grew slowly,” Bonnington reports. “After its debut in 2008, it took five years for annual revenue to reach $10 billion, a total it then doubled only two years later. Now the App Store is poised to double its 2015 revenues by some time in 2018.”

Read more in the full article here.

MacDailyNews Take: Any person who sells their AAPL shares based on quarterly projections of iPhone unit sales does not even remotely understand the company.


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