App Store Hits New Single-Day Revenue Record on New Year's Day With Customers Spending $322 Million

[AdonisSMU]

Alipay alone has about triple the number of users compared to Apple Pay.

If you travel across the globe, you'll more likely see the Alipay logo on a taxi or merchant window than Apple's.

Those users are highly highly concentrated to China and subjected to government tracking.
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First year in a long time our family spent zero on any apps, etc... over the holidays. I think Apple is in more trouble than folks realize. Wait until our economic picture changes with a recession, and see how well the consumer holds up then.

I can’t imagine rising rates are helping at the moment either.

This is just starting.

Agreed. Apple needs to figure out how to be premium for a cheaper price...or maybe they don't need people to upgrade as often and Apple can work on creating better software and services.

 

[TouchMint.com]

Apple doesn’t pretend to be the marketing arm for every App Store submitter. Ultimately it’s up to the individual/team to promote their app and build the brand recognition.

I understand that but they have shaped the App Store so that if you are not featured by them it’s much much harder to find your app. Top charts are now very much hidden away where before it was a more level playing ground. I’m by no means saying apple should feature every person. I’m sure soon apple will be charging to be featured (if they already are not behind closed doors). Just another way to make revenue.

 

[Soccertess]

yes, SHORT TERM REVENUE IS UP! yay! Tim must be doing a good job, even if people are leaving the mac platform and android sales have tripled.

 

[falainber]

How those are competition for Apple Pay? How i use Samsung pay or google pay with my iPhone? Competition means i want to use some other services with my phone instead Apple Pay so Apple would lose money. I could use banks own payment systems, but those aren't the level of Apple Pay. Best part with Apple pay is that you don't need extra app. What Apple pay offers in usability it's impossible to beat.

I use cash or card like 1-2 times a month.

You can always change your phone. It looks like this is what many people are doing right now.

 

[dannyyankou]

You are not the only person that uses Apple devices.

True, but I think this is more a matter of there being millions of people new to iOS instead of people spending more on apps.

Think about it: If there’s more drivers on the road, more money is going to be spent on gas overall. Fuel efficient cars will cut the costs for the individual consumer, but if you put 5 million new drivers on the road in one year, gas revenue will increase.

I’m more interested to see amount spent on apps per user than total revenue, that’ll give a more accurate representation of the App Store’s health. This is damage control.

 

[psac]

I understand that but they have shaped the App Store so that if you are not featured by them it’s much much harder to find your app. Top charts are now very much hidden away where before it was a more level playing ground. I’m by no means saying apple should feature every person. I’m sure soon apple will be charging to be featured (if they already are not behind closed doors). Just another way to make revenue.

And taking away the referral bonus from sites like TouchArcade will make it even more difficult for non-featured games to get noticed. I'm totally with you on this.

 

[dumastudetto]

Sorry Apple haters but our team is still killing it.
The iOS ecosystem is a license to print money.

 

[Duel]

You can always change your phone. It looks like this is what many people are doing right now.

Based on what? I haven't seen any signs of that, news like this is telling exact opposite

 

[nwcs]

I understand that but they have shaped the App Store so that if you are not featured by them it’s much much harder to find your app. Top charts are now very much hidden away where before it was a more level playing ground. I’m by no means saying apple should feature every person. I’m sure soon apple will be charging to be featured (if they already are not behind closed doors). Just another way to make revenue.

The App Store has had advertising for a while. And the search mechanism works pretty well. It’s really up to the app maker(s) to make it stand out and deliver the features that make it worth Apple’s time to feature.

 

[Baymowe335]

And just to put some perspective on this. Services pulls in the Millions. Hardware sales makes up the Billions.

Services just made $10.8B in 90 days and will make $45B in 2019. Billion.

At least get your numbers right.

 

[nwcs]

yes, SHORT TERM REVENUE IS UP! yay! Tim must be doing a good job, even if people are leaving the mac platform and android sales have tripled.

Source?
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Based on what? I haven't seen any signs of that, news like this is telling exact opposite

It’s the internet echo chamber. Usually people reading opinion pieces on places like this with no access to actual facts.

 

[Baymowe335]

Source?
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It’s the internet echo chamber. Usually people reading opinion pieces on places like this with no access to actual facts.

His source is nonsense: Mac is doing great. Per Tim Cook as of yesterday:

"Launches of MacBook Air and Mac mini powered the Mac to year-over-year revenue growth and the launch of the new iPad Pro drove iPad to year-over-year double-digit revenue growth. "

 

[ryanwarsaw]

Services just made $10.8B in 90 days and will make $45B in 2019. Billion.

At least get your numbers right.

With the latest guidance cut doesn't that show a really bad picture of phone sales?

 

[decypher44]

I’ve only purchased one thing from the App Store, and that was an accidental in-app purchase, which I got a refund.

I must not be the target demo. I can’t see spending money for anything on the phone.

 

[nwcs]

With the latest guidance cut doesn't that show a really bad picture of phone sales?

Not really bad but less than expected. I think the problem oftentimes in these discussions is hyperbole. It can still be YOY growth but not as much as people expected. Is that really bad? Not necessarily. People may have expected too much or the company underperformed. But a single quarter’s result is hardly really bad unless it’s a dramatic double digit or more decline. If their YOY growth continues to decline and reaches near 0 then I think we’ll know something. Right now there are simply a lot of Monday Morning CEOs pretending to know far more than they really do.

 

[falainber]

His source is nonsense: Mac is doing great. Per Tim Cook as of yesterday:

"Launches of MacBook Air and Mac mini powered the Mac to year-over-year revenue growth and the launch of the new iPad Pro drove iPad to year-over-year double-digit revenue growth. "

Is it the same Tim Cook who two months ago claimed that China business was doing great? One should parse Apple PR very careful. In most cases it will be factually correct but pointless. For example "year-over-year double digit revenue growth" (for a single month or quarter) may simply reflect the fact that last year iPad was released during the different quarter (or not released at all). The only solid number we have is $9B drop in revenue. One can't spin this one.

 

[now i see it]

The price of boredom.
I wonder if annual subscriptions go into the pot. Probably.
There's roughly 600,000,000 active iOS devices world wide. $1.2B isn't really that jaw dropping. $2/customer. I know my subscriptions are more than $24/year.

 

[RickInHouston]

Sorry Apple haters but our team is still killing it.
The iOS ecosystem is a license to print money.

Our team?

Who is the ecosystem printing more for?

 

[falainber]

Sorry Apple haters but our team is still killing it.
The iOS ecosystem is a license to print money.

I assume that this was a sarcasm but still. So called "iOS ecosystem" has two phone models, one watch model, three tablet models and Apple TV. That's not an "ecosystem", that's "econiche".

 

[Duel]

Is it the same Tim Cook who two months ago claimed that China business was doing great?

Where was this? I don't remember seeing this kind of article. Source?

From two months ago i only remember this

"Tim Cook visits China, tries to help with disappointing iPhone XS sales in the country"
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I assume that this was a sarcasm but still. So called "iOS ecosystem" has two phone models, one watch model, three tablet models and Apple TV. That's not an "ecosystem", that's "econiche".

Over billion people disagree, also what you mean by two phone models?

 

[Baymowe335]

Is it the same Tim Cook who two months ago claimed that China business was doing great? One should parse Apple PR very careful. In most cases it will be factually correct but pointless. For example "year-over-year double digit revenue growth" (for a single month or quarter) may simply reflect the fact that last year iPad was released during the different quarter (or not released at all). The only solid number we have is $9B drop in revenue. One can't spin this one.

We don't have a $9B drop in revenue. You're quoting the highest end of guidance of $93B...they only guided for $89-$93B.

China's slowdown has been fast and very recent. The manufacturing report the just came out was flat out bad, much worse than even 60 days ago. Trade tensions have gotten worse and yes, things can happen quickly. Apple isn't stupid. They almost always hit guidance or exceed it. They thought they could do $89-$93B with the facts they had 90 days ago. They miscalculated. and the facts obviously changed in China and some emerging markets. US revenue was up. Germany up. Canada up. Italy up. Spain up. Korea up.

Post his exact quote and the date in which he said. Things evidently changed. He literally can't lie, so he would have likely said nothing if it weren't good.

Also, there are many Apple businesses (non iPhone) that are doing fantastic in China. He went on to say this:

"Our results in China include a new record for Services revenue, and our installed base of devices grew over the last year."

There are many positives to the story. The non-iPhone businesses grew at 19% overall, services at 25%, and wearables at 50%. These are areas that will eventually replace iPhone revenue, which is a good thing.

 

[falainber]

Where was this? I don't remember seeing this kind of article. Source?

From two months ago i only remember this

"Tim Cook visits China, tries to help with disappointing iPhone XS sales in the country"
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Over billion people disagree, also what you mean by two phone models?

It was all over CNBC and Bloomberg today. I believe they were referring to the answer Cook gave during the analyst meeting for the previous quarter. Here is an example:

Cook said two months ago that Apple’s China business was “very strong,” even amid signs of an economic slowdown and months of headlines about trade tensions with the U.S. He consistently told investors that he thought the U.S. and China would resolve their trade dispute amicably and didn’t give any indications that consumers were on edge or reluctant to shop because of the geopolitical fracas.

The two iPhone models are obviously XS and XR. Everything else is just old models.

 

[Baymowe335]

With the latest guidance cut doesn't that show a really bad picture of phone sales?

I was talking about services, because this due said services was in the "millions" and hardware was in the billions.

Well, services ARE in the billions. As in $10.8B for 90 days.

 

[falainber]

We don't have a $9B drop in revenue. You're quoting the highest end of guidance of $93B...they only guided for $89-$93B.

China's slowdown has been fast and very recent. The manufacturing report the just came out was flat out bad, much worse than even 60 days ago. Trade tensions have gotten worse and yes, things can happen quickly. Apple isn't stupid. They almost always hit guidance or exceed it. They thought they could do $89-$93B with the facts they had 90 days ago. They miscalculated. and the facts obviously changed in China and some emerging markets. US revenue was up. Germany up. Canada up. Italy up. Spain up. Korea up.

Post his exact quote and the date in which he said. Things evidently changed. He literally can't lie, so he would have likely said nothing if it weren't good.

Also, there are many Apple businesses (non iPhone) that are doing fantastic in China. He went on to say this:

"Our results in China include a new record for Services revenue, and our installed base of devices grew over the last year."

There are many positives to the story. The non-iPhone businesses grew at 19% overall, services at 25%, and wearables at 50%. These are areas that will eventually replace iPhone revenue, which is a good thing.

But that is exactly the problem, is not it? Cook created an impression that business in China was doing great by emphasizing the positives which, while real, are insignificant considering that the lion share of Apple profits comes from iPhone. And as far as replacing iPhone revenues goes... It might happen but as they say: "Past performance is not indicative of future results". I am not aware of any compelling Apple services. As I understand the service that brings the most profits is the fee that Google pays Apple for using Google search.

 

[Duel]

It was all over CNBC and Bloomberg today. I believe they were referring to the answer Cook gave during the analyst meeting for the previous quarter. Here is an example:

Cook said two months ago that Apple’s China business was “very strong,” even amid signs of an economic slowdown and months of headlines about trade tensions with the U.S. He consistently told investors that he thought the U.S. and China would resolve their trade dispute amicably and didn’t give any indications that consumers were on edge or reluctant to shop because of the geopolitical fracas.

The two iPhone models are obviously XS and XR. Everything else is just old models.

"Our business in China was very strong last quarter," said Chief Executive Officer Tim Cook, who said he was pleased with the 16 percent gain and singled out growth in iPhone sales."

So it was for earlier quarter not for this.

Why old models doesn't belong to ecosystem? what nonsense is that? If only new devices are worth for ecosystem Android ecosystem just became niche too.

Those old models print money for Apple just like the new ones