US iPhone users spent, on average, $79 on apps last year, up 36% from 2017

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Apple’s push to get developers to build subscription-based apps is now having a notable impact on App Store revenues. According to a new report from Sensor Tower due out later this week, revenue generated per U.S. iPhone grew 36 percent, from $58 in 2017 to $79 last year. As is typical, much of that increase can be attributed to mobile gaming, which accounted for more than half of this per-device average. However, more substantial growth took place in the categories outside of gaming — including those categories where subscription-based apps tend to rule the top charts, the firm found.

According to the report’s findings, per-device app spending in the U.S. grew more over the past year than it did in 2017.

From 2017 to 2018, iPhone users spent an average of $21 or more on in-app purchases and paid app downloads — a 36 percent increase compared with the 23 percent increase from 2016 to 2017, when revenue per device grew from $47 to $58.

However, 2018’s figure was slightly lower than the 42 percent increase in average per-device spending seen between 2015 and 2016, when revenue grew from $33 to $47, noted Sensor Tower.

As usual, mobile gaming continued to play a large role in iPhone spending. In 2018, gaming accounted for nearly 56 percent of the average consumer spend — or $44 out of the total $79 spent per iPhone.

But what’s more interesting is how the non-gaming categories fared this past year.

Some categories — including those where subscription-based apps dominate the top charts — saw even higher year-over-year growth in 2018, the firm found.

For example, Entertainment apps grew their spend per device increase by 82 percent to $8 of the total in 2018. Lifestyle apps increased by 86 percent to reach $3.90, up from $2.10.

And though it didn’t make the top five, Health & Fitness apps also grew 75 percent year-over-year to account for an average of $2.70, up from $1.60 in 2017.

Other categories in the top five included Music and Social Networking apps, which both grew by 22 percent.

This data indicates that subscription apps are playing a significant role in helping drive iPhone consumer spending higher.

The news comes at a time when Apple has reported slowing iPhone sales, which is pushing the company to lean more on services to continue to boost its revenue. This includes not just App Store subscriptions, but also things like Apple Music, Apple Pay, iCloud, App Store Search ads, AppleCare and more.

As subscriptions become more popular, Apple will need to remain vigilant against those who would abuse the system.

For example, a number of sneaky subscription apps were found plaguing the App Store in recent weeks. They were duping users into paid memberships with tricky buttons, hidden text, instant trials that converted in days and the use of other misleading tactics.

Apple later cracked down by removing some of the apps, and updated its developer guidelines with stricter rules about how subscriptions should both look and operate.

A failure to properly police the App Store or set boundaries to prevent the overuse of subscriptions could end up turning users off from downloading new apps altogether — especially if users begin to think that every app is after a long-term financial commitment.

Developers will need to be clever to convert users and retain subscribers amid this shift away from paid apps to those that come with a monthly bill. App makers will need to properly market their subscription’s benefits, and even consider offering bundles to increase the value.

But in the near-term, the big takeaway for developers is that there is still good money to be made on the App Store, even if iPhone sales are slowing.

App Store developers have earned $120 billion since 2008

Since the creation of the App Store, Apple has given back $120 billion in revenue to App Store developers. It means that the App Store has generated more revenue than that in total. But if you remove Apple’s cut, $120 billion have been wired to developers.

App Store revenue is still growing rapidly, as more than $30 billion of developer revenue has been generated in the last 12 months alone. Apple reported $100 billion in developer revenue at WWDC back in June 2018.

Apple only counts direct App Store revenue, such as paid downloads, in-app purchases and subscriptions. Developers also could have generated more revenue through ads and subscriptions on a website, for instance.

Apple App Store caps record-breaking 2018 with blockbuster holiday week

Customers Spent $1.22B During the 2018 Holiday and Kicked off 2019 With a New Single-Day Record on New Year’s Day

A collage of the year’s best-selling apps.
Apple today announced that App Store customers worldwide set new spending records over the holidays, wrapping up a record-breaking year. App Store spending topped $1.22 billion between Christmas Eve and New Year’s Eve. Customers also spent over $322 million on New Year’s Day 2019 alone, setting a new single-day record.
“The App Store had a record-breaking holiday week and New Year’s Day. The holiday week was our biggest week ever with more than $1.22 billion spent on apps and games, and New Year’s Day set a new single-day record at more than $322 million,” said Phil Schiller, Apple’s senior vice president of Worldwide Marketing. “Thanks to the inspiring work of our talented developers and the support of our incredible customers around the world, the App Store finished off an outstanding 2018 and kicked off 2019 with a bang.”
Apple announced Wednesday that the App Store helped drive Services revenue to an all-time record in the holiday quarter. Apple services set new all-time records in multiple categories, including the App Store, Apple Music, Cloud Services, Apple Pay and the App Store’s search ad business.
Gaming and self-care were the most popular categories of app downloads and subscriptions during the holidays. Globally, multiplayer games including Fortnite and PUBG were among the top downloaded games over the holidays, along with Brawl Stars, Asphalt 9 and Monster Strike. Productivity, Health & Fitness and Education apps are already capturing the attention of customers in the first few days of the year with 1Password, Sweat and Luminosity charting in their respective categories.

Apple’s App Store had double Google’s million dollar publishers in 2018

In 2018, Apple’s U.S. App Store minted 164 new millionaire publishers compared to 88 for the Google Play store according to a new store intelligence report by Sensor Tower.

Google Play in the United States took the top spot in total growth of the number of new publishers to hit $1 million year-over-year with a rise from 71 publishers in 2017 or 24 percent, while Apple had 15 percent growth with a rise from 143 publishers in 2017.

In the App Store, games was the most popular category of apps, making up 33 percent of the publishers who made their first $1 million or more in revenue in 2018. That amounts to 60 percent of the platform’s total revenue in 2018.

FoxNext Games, which publishes Marvel Strike Force and is a division of 20th Century Fox, topped the gaming category with $15 million in revenues in 2018. Released in March, Marvel Strike Force is a role-playing game that allows users to play popular characters from the Marvel Universe like Hulk, Black Panther and Spider-Man. The game itself is free to play but users pay real world money for in-game add ons called “Power Cores.”

Health & Fitness and Lifestyle were also important categories for the App Store with 12 percent and 10 percent of the total representing the publishers who created popular downloads including meditation app Breethe, initially released in 2015, and guided workout app 30 Day Fitness Challenge, which launched in 2013.

Overall, the gaming category was even more important to Google Play’s bottom line with 65 percent or 55 of 84 publishers grouped into this category. Social apps were second most popular for Google Play after games with six percent of publishers.

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Under Amour + HYPERBOLIC “CRUSH THE LIMITS”

Under Amour + HYPERBOLIC
“CRUSH THE LIMITS”

Crush The Limits boldly leverages all media touchpoints to feature some of the world’s best kid athletes as they represent Under Amour’s first-ever launch of a youth outerwear collection.

HYPERBOLIC, an award wining NYC creative agency, is proud to announce the launch of Crush The Limits—the rallying cry for Under Amour’s first ever fall/winter Youth Outerwear collection launching today throughout North America. Dimitri Falk, Chief Creative Officer and founder, exclaims: “The goal of Crush The Limits was to capture the swagger of the UA attitude in a way that speaks directly to kids without alienating parents. In short, we wanted something bold and authentic that would break through.” 

HYPERBOLIC was responsible for all aspects of the Crush The Limits campaign including brand and behavioral strategy, ideation, art direction, video and photo production.

Crush The Limits drops on September 20th and will be refreshed over the next six months on all Under Amour owned media platforms, traditional media, POS, events and the athletes’ social channels.

A CAMPAIGN WITH GRIT


Crush The Limits is about what it takes to be truly GREAT at any age—on and off the field. What is the heart and soul of a champion? Is achieving peak performance something you’re born with, or is it the will to grind it out harder than anyone else? The answers: It’s all about the swagger, the heart, the discipline, and the humility of what it means to truly Crush It in life!

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THE LINE UP
VIEW IMAGES
HYPERBOLIC tapped Under Amour’s talent network and scoured the Internet to find seven world-class athletes that embody the Crush The Limits ethos. Our criteria: Exceptional talent, a significant presence on social media, and a passionate, humble spirit.

Bunchie Young 
@bunchieyoung
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@skatersumini
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@jessethechosenone
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@cshimkin10
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@wearehyperbolic
wearehyperbolic.com

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James Raskin
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wearehyperbolic.com

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gluenyc.com

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stevencounts.com

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Gary Yentin
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416-464-2223

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Apple’s App Store revenue nearly double that of Google Play in first half of 2018

apple-app-store-ios

Apple’s App Store continues to outpace Google Play on revenue. In the first half of the year, the App Store generated nearly double the revenue of Google Play on half the downloads, according to a new report from Sensor Tower out today. In terms of dollars and cents, that’s $22.6 billion in worldwide gross app revenue on the App Store versus $11.8 billion for Google Play – or, 1.9 times more spent on the App Store compared with what was spent on Google Play.

This trend is not new. Apple’s iOS store has consistently generated more revenue than its Android counterpart for years due to a number of factors – including the fact that Android users historically have spent less on apps than iOS users, as well as the fact that there are other Android app stores consumer can shop – like the Amazon Appstore or Samsung Store, for example. In addition, Google Play is not available in China, but Apple’s App Store is.

Last year, consumer spending on the App Store reached $38.5 billion, again nearly double that of Google Play’s $20.1 billion.

As the new figures for the first half of 2018 indicate, consumer spending is up this year.

Sensor Tower estimates it has increased by 26.8 percent on iOS compared with the same period in 2017, and it’s up by 29.7 percent on Google Play.

The growth in spending can be partly attributed to subscription apps like Netflix, Tencent Video, and even Tinder, as has been previously reported.

Subscription-based apps are big businesses these days, having helped to boost app revenue in 2017 by 77 percent to reach $781 million, according to an earlier study. Netflix was also 2017’s top non-game app by revenue, and recently became ranked as the top (non-game) app of all-time by worldwide consumer spend, according to App Annie’s App Store retrospective.

Many of the other all-time top apps following Netflix were also subscription-based, including Spotify (#2), Pandora (#3), Tencent Video (#4), Tinder (#5), and HBO NOW (#8), for example.

And Netflix is again the top non-game app by consumer spending in the first half of 2018, notes Sensor Tower.

Game spending, however, continues to account for a huge chunk of revenue.

Consumer spending on games grew 19.1 percent in the first half of 2018 to $26.6 billion across both stores, representing roughly 78 percent of the total spent ($16.3 billion on the App Store and $10.3 billion on Google Play). Honor of Kings from Tencent, Monster Strike from Mixi, and Fate/Grand Order from Sony Aniplex were the top grossing games across both stores.

App downloads were also up in the first half of the year, if by a smaller percentage.

Worldwide first-time app installs grew to 51 billion in 1H18, or up 11.3 percent compared with the same time last year, when downloads were then 45.8 billion across the two app stores.

Facebook led the way on this front with WhatsApp, Messenger, Facebook and Instagram as the top four apps across both the App Store and Google Play combined. The most downloaded games were PUBG Mobile from Tencent, Helix Jump from Voodoo, and Subway Surfers from Kiloo.

Google Play app downloads were up a bit more (13.1 percent vs iOS’s 10.6 percent) year-over-year due to Android’s reach in developing markets, reaching 36 billion. That’s around 2.4 times the App Store’s 15 billion.

Despite this, Apple’s platform still earned more than double the revenue with fewer than half the downloads, which is remarkable. And it can’t all be chalked up to China. (The country contributed about 31.7 percent of the App Store revenue last quarter, or $7.1 billion, to give you an idea.)

Sensor Tower tells TechCrunch that even if China was removed from the picture, the App Store would have generated $15.4 billion gross revenue for first half of 2018, which is still about 30 percent higher than Google Play’s $11.8 billion.

Image Credits: TechCrunch

Sarah Perez

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