Sensor Tower: Global App Store Spending on Christmas Day 2019 Hit a Record $193 Million

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Consumer spending on the App Store totaled a record $193 million on Christmas Day 2019, representing a 16 percent increase year on year, according to a new report by Sensor Tower.


Approximately $84 million was spent on the Google Play store, representing year-on-year growth of 2.7 percent. Apple's App Store accounted for 70 percent of spending between the two platforms, which amounted to $277 million combined.

That total represented combined year-over-year growth of 11.3 percent for the two stores, which brought in $249 million combined in user spending on Christmas Day in 2018.

Sensor Tower says the increase in spending was largely due to new mobile device owners and people who received App Store gift cards, with games being the most popular purchase.

The majority of mobile spending on Christmas, approximately $210 million, was focused on the Games category, which generated 76 percent of revenue across both stores and grew about 8 percent Y/Y from $195 million. PUBG Mobile from Tencent's TiMi studio led in-game spending with $8.5 million, up 431 percent from the $1.6 million players spent in the game on Christmas 2018.
Other apps accounted for approximately 2 percent more of all spending this Christmas compared to a year prior, bringing in an estimated $67 million. The top non-game app for overall spending on Christmas was reportedly the dating app Tinder, which brought in a gross global revenue near $2.1 million.

The App Store makes up a huge portion of Apple's services business. It currently receives a 30 percent cut of all revenue that developers earn from the App Store, with the exception of subscription apps. For apps where a customer maintains a subscription for more than a year, developers are entitled to an 85/15 split, with Apple taking a 15 percent cut rather than a 30 percent cut.

Article Link: Sensor Tower: Global App Store Spending on Christmas Day 2019 Hit a Record $193 Million
 
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Abazigal

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There's way more Android devices for every Apple device sold. The Google Play revenue is pitiful compared to Apple's. I wonder if Android users have a culture of not-wanting-to-pay for apps, or if some other big factor like piracy is involved.
It’s the same reason why Google pays Apple so much money every year to keep Google search the default engine in Safari. Through the iPhone, Apple has aggregated the best customers (those with the highest propensity to spend). So iphone users by and large are more willing to spend on content.

There is also the issue of higher piracy rates on android compared to iOS, which makes app development a lot less profitable on android.

This is what people who keep proselytising the larger android user base don’t get - it’s not more market share in a vacuum that determines how profitable a platform will be, but usage share.
 

JosephAW

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And how many devices were sold on Christmas Day? Soooo that like 5 99¢ apps per device?
 
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69Mustang

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China. That's the primary explanation you both seemed to overlook. For a bit of perspective: Active Android devices in China - 731 million... and that was in 2018. That's more than twice the population of the entire US.
There's way more Android devices for every Apple device sold. The Google Play revenue is pitiful compared to Apple's. I wonder if Android users have a culture of not-wanting-to-pay for apps, or if some other big factor like piracy is involved.
There are way more devices, but most of them contribute no revenue to the Play Store. The Play Store gets no revenue from the #1 Android market in the world: China. That revenue goes to Chinese companies like Tencent, Baidu, and Xiaomi.
It’s the same reason why Google pays Apple so much money every year to keep Google search the default engine in Safari... {snipped for brevity and clarity}
Not only does the Play Store not get any revenue from the largest Android market, they it also competes with the individual stores from each of the handset makers. Oh, and Amazon. Play Store doesn't get any revenue from Amazon's flavor of Android.

The reasons you guys speculated would fall waaaaaaaaaaaaaaaaay down the list of contributing factors. China is the answer. Imagine Apple's App Store revenue without China.
 
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travelsheep

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Logic says iPhone should be available for free or for a ridiculously low price, cross-financed by Games and Services, providing the iOS platform to more people.

Reality however shows that iOS customers love to spend big
 
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Baymowe335

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Of course it was. I’ve been telling you guys the record number of active devices and no one switching matters far more than unit sales.

Keep building that user base.
 

69Mustang

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<snip>
Nope. China is nowhere near half of Apple’s revenue. In 2019 it was about 17% for greater China, i.e. mainland China, Hong Kong, Macao and Taiwan.
Are you sure? China may have been 17% of Apple's overall revenue, but I thought it was a greater impact on App Store revenue. Eh, immaterial to the point of the post. Looking back at my comment, I can sort of see where you thought I might have meant overall revenue. But contextually, I thought App Store revenue was clear. I'll clarify my original quote to maintain it's focus. Anywho, my primary point stands. The Play Store revenue is and will always be lower because it has no access to the largest Android market in the world.
 

PickUrPoison

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Are you sure? China may have been 17% of Apple's overall revenue, but I thought it was a greater impact on App Store revenue. Eh, immaterial to the point of the post. Looking back at my comment, I can sort of see where you thought I might have meant overall revenue. But contextually, I thought App Store revenue was clear. I'll clarify my original quote to maintain it's focus. Anywho, my primary point stands. The Play Store revenue is and will always be lower because it has no access to the largest Android market in the world.
My comment had nothing to do with Play Store revenue, just that 50% of App Store revenue is in no way an accurate estimate of China’s contribution to overall App Store sales.

iPhone penetration in China is far less than the rest of the world; Apple has something around 10-15% market share.

Though greater China in 2019 contributed about 17% to Apple’s overall revenue, China’s App Store revenue may be less than 10% of total App Store revenue.
 

Appleman3546

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May 13, 2019
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I wonder if www.altstore.io will affect Apple’s App Store revenue at all next year since it provides an alternative App Store on iOS. After all, the Google Play Store revenue per user (lots of devices) is small because apps like Fortnite can be distributed elsewhere.
 
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69Mustang

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My comment had nothing to do with Play Store revenue, just that 50% of App Store revenue is in no way an accurate estimate of China’s contribution to overall App Store sales.
I know. Which is why I tried to clarify. You and I are discussing different points. I'm discussing the topic of App Store revenue and the reasons for the disparity. You're refuting my percentage guess about Apple's revenue. It was an comment attached to the end of a longer point. Are your number right? Idk, probably. Has nothing to do with my larger point, which you seem to have no interest in discussing. So let's part ways here, since I have no interest in this.
 

Ramchi

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There's way more Android devices for every Apple device sold. The Google Play revenue is pitiful compared to Apple's. I wonder if Android users have a culture of not-wanting-to-pay for apps, or if some other big factor like piracy is involved.
Normal Android users use services and pay for the service providers like Uber, Food Delivery, E-Commerce, wallet services for various online purchases etc...Android Apps target volume(I mean 80% of total mobile users are their potential customers) consumers without making them to pay for the app instead pay for the services. Besides, most of the useful, commonly used productivity apps make you pay off-line and use their paid apps (eg: OneDrive, Google Drive).

Paying for apps are not vogue in Android Playstore anymore
 

PickUrPoison

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I know. Which is why I tried to clarify. You and I are discussing different points. I'm discussing the topic of App Store revenue and the reasons for the disparity. You're refuting my percentage guess about Apple's revenue. It was an comment attached to the end of a longer point. Are your number right? Idk, probably. Has nothing to do with my larger point, which you seem to have no interest in discussing. So let's part ways here, since I have no interest in this.
If you want to take an ill-thought out and inaccurate pot shot at Apple when you make your “larger point”, don’t be surprised when you get pushback 🤷‍♂️ (And similarly, when you pushback against the pushback with further inaccuracies, you may just get a response to that as well.)

Be that as it may, your point about the lack of China revenue in the Play Store, in addition to being unable to compete effectively with Chinese companies as you mention, can probably be explained by a combination of factors as well, including: Google being unable to deal with piracy, low-quality apps in the Play Store, malware in the Play Store, lack of real tablet apps, and Google’s overall inability to create a compelling destination for those users who actually do pay for apps. Google has those same issues in every country, afaik, including lack of revenue from Amazon’s fork.
 

realtuner

macrumors 68000
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China. That's the primary explanation you both seemed to overlook. For a bit of perspective: Active Android devices in China - 731 million... and that was in 2018. That's more than twice the population of the entire US.

There are way more devices, but most of them contribute no revenue to the Play Store. The Play Store gets no revenue from the #1 Android market in the world: China. That revenue goes to Chinese companies like Tencent, Baidu, and Xiaomi.

Not only does the Play Store not get any revenue from the largest Android market, they it also competes with the individual stores from each of the handset makers. Oh, and Amazon. Play Store doesn't get any revenue from Amazon's flavor of Android.

The reasons you guys speculated would fall waaaaaaaaaaaaaaaaay down the list of contributing factors. China is the answer. Imagine Apple's App Store revenue without China.
Lots of excuses to try and explain awaythe dismal performance of the Play Store and Android.

The reason the Play Store has lower revenues is because most Android devices sold are sub $100 budget phones. Those users aren’t spending money on Apps or services. Owners of flagship Android phones (Samsung Galaxy, for example) spend money, but they are a tiny fraction of the overall Android user base. All 1.4 billion iOS devices out there can be considered flagships. As @Abazigal said, Apple has aggregated the best customers.

I find it hilarious when people have to add up Play Store revenue and revenue from third party Android stores to compare to The App Store because they’re so upset The App Store trounces the Play Store. It also shows a lack of understanding of the Android market. Considering I explained this to you in detail in the past I’m surprised you come back posting the same garbage again.
 

69Mustang

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Lots of excuses to try and explain awaythe dismal performance of the Play Store and Android.

The reason the Play Store has lower revenues is because most Android devices sold are sub $100 budget phones. Those users aren’t spending money on Apps or services. Owners of flagship Android phones (Samsung Galaxy, for example) spend money, but they are a tiny fraction of the overall Android user base. All 1.4 billion iOS devices out there can be considered flagships. As @Abazigal said, Apple has aggregated the best customers.
Is it your contention that the "reasons" you and others have mentioned have a greater affect on the Play Store revenue than lack of access to the Chinese market? If so, silly.
I find it hilarious when people have to add up Play Store revenue and revenue from third party Android stores to compare to The App Store because they’re so upset The App Store trounces the Play Store. It also shows a lack of understanding of the Android market. Considering I explained this to you in detail in the past I’m surprised you come back posting the same garbage again.
What the heck are you on about? There's no aggregation of revenue in my quote. I find it hilarious you just created a false claim to argue against. Please don't do that. Whether I am right or wrong, don't make up stuff and attribute it to me.
 

realtuner

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Is it your contention that the "reasons" you and others have mentioned have a greater affect on the Play Store revenue than lack of access to the Chinese market? If so, silly.
They are the #1 reason. The Play Store has over 2.5 billion Android active devices (according to Google). iOS has 1.4 billion active devices (according to Apple). Yet The App Store substantially outperforms the Play Store for App revenues despite the split of users being 64% Android and 36% iOS.

All you're doing by bringing up Chinese third party stores is trying to deflect away from what this article compared, which was revenues from the Play Store vs The App Store.

What the heck are you on about? There's no aggregation of revenue in my quote. I find it hilarious you just created a false claim to argue against. Please don't do that. Whether I am right or wrong, don't make up stuff and attribute it to me.
I'm basing my comment on what you said here and what you've said in the past. Why should I constrain my comments to only one specific thing you've said, instead of your general position based on numerous comments? Especially when you have a habit of creating very carefully worded posts to imply something while never actually committing so when called out you can later deny that's what you meant.

You are flat out wrong in all your comparisons between The App Store and the Play Store (and third party App stores). Since you seem to have forgotten I'll explain it to you again:



The entire point of an ecosystem (Android or iOS) is to have enough users to support the developers who create Apps. You need both, and it's a chicken & egg scenario. Developers won't waste resources creating Apps for a market of non-existent devices. Customers also don't want to buy devices that aren't well supported where they can get all their favorite Apps. Look at Windows Phone for a perfect example of this. The App Store and the Play Store both have a large, healthy ecosystem of developers and users (except for Android tablets, which are dead, but that's another topic).

When a developer for iOS or Android creates a great new App it enhances the ecosystem for each. When an OEM makes a new device that people buy in the millions it also enhances the ecosystem by giving developers another potential target to developer for and the cycle continues improving the ecosystem for both.

The problem with third party Android stores (esp ones in China or India) is they are locked down. Practically all the Apps on Google Play are not available on Tencent, Baidu or other stores. And the reverse also holds true - the vast majority of Apps from Tencent or Baidu aren't available on Google Play. In other words, they do nothing at all to enhance the ecosystem. Each of them are a self-contained ecosystem. They might run Android (or a highly modified and locked down version of it) but they are in no way a part of the Android ecosystem. They contribute nothing to Android users in other ecosystems (like the Play Store) and they get no benefits from the Play Store or OEMs that make devices with Google Play Services.

This is why it's pointless to try and include third party stores (or device manufacturers or carriers) as part of the overall Android ecosystem. They aren't.

That said, I fully understand the desire to compare. It doesn't look good to say Android has 64% of the market and iOS has 36%. It's much better to include phones from locked down ecosystems so you can say Android has 85% and iOS only 15%. Likewise, it looks better to compare revenues from the Play Store and all third party Android stores combined because it doesn't look good to see The App Store continuously outperform the Play Store for App revenues. Any way to move the goalposts to get a win, I guess.
 
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69Mustang

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They are the #1 reason. The Play Store has over 2.5 billion Android active devices (according to Google). iOS has 1.4 billion active devices (according to Apple). Yet The App Store substantially outperforms the Play Store for App revenues despite the split of users being 64% Android and 36% iOS.

All you're doing by bringing up Chinese third party stores is trying to deflect away from what this article compared, which was revenues from the Play Store vs The App Store.


I'm basing my comment on what you said here and what you've said in the past. Why should I constrain my comments to only one specific thing you've said, instead of your general position based on numerous comments? Especially when you have a habit of creating very carefully worded posts to imply something while never actually committing so when called out you can later deny that's what you meant.

You are flat out wrong in all your comparisons between The App Store and the Play Store (and third party App stores). Since you seem to have forgotten I'll explain it to you again:



The entire point of an ecosystem (Android or iOS) is to have enough users to support the developers who create Apps. You need both, and it's a chicken & egg scenario. Developers won't waste resources creating Apps for a market of non-existent devices. Customers also don't want to buy devices that aren't well supported where they can get all their favorite Apps. Look at Windows Phone for a perfect example of this. The App Store and the Play Store both have a large, healthy ecosystem of developers and users (except for Android tablets, which are dead, but that's another topic).

When a developer for iOS or Android creates a great new App it enhances the ecosystem for each. When an OEM makes a new device that people buy in the millions it also enhances the ecosystem by giving developers another potential target to developer for and the cycle continues improving the ecosystem for both.

The problem with third party Android stores (esp ones in China or India) is they are locked down. Practically all the Apps on Google Play are not available on Tencent, Baidu or other stores. And the reverse also holds true - the vast majority of Apps from Tencent or Baidu aren't available on Google Play. In other words, they do nothing at all to enhance the ecosystem. Each of them are a self-contained ecosystem. They might run Android (or a highly modified and locked down version of it) but they are in no way a part of the Android ecosystem. They contribute nothing to Android users in other ecosystems (like the Play Store) and they get no benefits from the Play Store or OEMs that make devices with Google Play Services.

This is why it's pointless to try and include third party stores (or device manufacturers or carriers) as part of the overall Android ecosystem. They aren't.

That said, I fully understand the desire to compare. It doesn't look good to say Android has 64% of the market and iOS has 36%. It's much better to include phones from locked down ecosystems so you can say Android has 85% and iOS only 15%. Likewise, it looks better to compare revenues from the Play Store and all third party Android stores combined because it doesn't look good to see The App Store continuously outperform the Play Store for App revenues. Any way to move the goalposts to get a win, I guess.
Brevity is your friend. No one is reading that missive. Nothing I've said here suggests an aggregated Android. In fact I stated the opposite. Afaik, nothing in my past statements does either as it relates to this topic. That's a lot of wasted keystrokes... and time.
 

dannyyankou

macrumors G3
Mar 2, 2012
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Logic says iPhone should be available for free or for a ridiculously low price, cross-financed by Games and Services, providing the iOS platform to more people.

Reality however shows that iOS customers love to spend big
Interesting idea. Xbox takes a loss on their console sales, and Microsoft makes all of their Xbox revenue from game sales.
 

gnasher729

macrumors P6
Nov 25, 2005
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I wonder if www.altstore.io will affect Apple’s App Store revenue at all next year since it provides an alternative App Store on iOS. After all, the Google Play Store revenue per user (lots of devices) is small because apps like Fortnite can be distributed elsewhere.
All apps on this store have been created violating Apple's developer license contract. So you can be quite sure that all the app certificates will be revoked soonish, and the apps will stop working. The only way to distribute apps permanently outside the App Store is the customer getting an Enterprise Developer License for $299 a year, and then they can install their own apps on every device owned or controlled by their company.
 
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Appleman3546

macrumors regular
May 13, 2019
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All apps on this store have been created violating Apple's developer license contract. So you can be quite sure that all the app certificates will be revoked soonish, and the apps will stop working. The only way to distribute apps permanently outside the App Store is the customer getting an Enterprise Developer License for $299 a year, and then they can install their own apps on every device owned or controlled by their company.
Except this does not use the enterprise developer license, this pretends (for each app on this store and the store itself) to be a beta tested app by each user (essentially Apple would have to shut down their entire education platform that allows students to test apps using their Apple ID). Read their faq at www.altstore.io or watch this video to see why it cannot be revoked by Apple:
Google and other companies could absolutely create their own version of AltStore too because Altstore is open source, but they could not get cut out like with the enterprise certificate without shutting down all of Apple's education platform: https://www.macrumors.com/2019/01/31/apple-shuts-down-google-internal-apps/.
 
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mijail

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Oct 31, 2010
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Logic says iPhone should be available for free or for a ridiculously low price, cross-financed by Games and Services, providing the iOS platform to more people.

Reality however shows that iOS customers love to spend big
When your "logic" fails vs reality, there's probably something wrong with your "logic".