Here’s Why U.S. Spending in Apple’s App Store Jumped 15% in 2016

The success of Apple’s services businesses and hardware unit are intertwined.


Apple’s (AAPL)  App Store seems to have an app for everything — and users are snatching them up.

iPhone users in the U.S. spent an average of $40 on iOS App Store purchases in 2016, up from $35 in 2015, data-tracking firm Sensor Tower reported this week.

More than 80% of the revenue generated in 2016 by the domestic App Store was in the “games” category, Sensor Tower said. Revenue per active iPhone user rose from $25 to $27 year-over-year.

In second place in terms of the amount of money spent in the App Store was the “Music” category, which saw a slight increase to $3.60 spent individually in 2016, up from $3.40 the prior year.

The third-highest grossing category — and the category that showed the highest growth in 2016 — was the “entertainment” unit, which included apps from Time Warner’s (TWX) HBO Now and Hulu, which is part-owned by Disney (DIS) and Netflix (NFLX) . Individual spending soared 130% year-over-year for that category, from $1 to $2.30.

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The data comes as Apple has said it wants to double its services business, which includes the App Store, iTunes, Apple Music, Apple Pay and iCloud by 2020, according to CEO Tim Cook’s comments during the company’s first quarter earnings call last month. The services business hit $7.17 billion for the December quarter.

Sources :/


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