Releasing data for this year, Apple claims to have paid a whopping $70 billion in the app developer payout in 2017. This of course is after the tech giant has done taking its commissions. This is the first time apple has reached such sturdy heights after paying a mere $50 billion last year. (We are strictly talking billions as ‘mere’ because the company in concern is Apple)
Apple’s ecosystem getting stronger and more varied?
The iPhone sales have fallen off the cliff with major markets reaching saturation points. The year on year growth has almost reached a level where gains are small. This year there has been only 3 percent growth for the iPhone which by the lofty standards of Apple is nothing at all.
As revenues continue to get slower from the sales, the ecosystem is moving towards apps related business. Apple claim that in the last 12 months app downloads have increased “over 70 percent”. This includes popular games including Pokemon GO and Super Mario. The focus however, falls on the lesser known apps like CancerAid, SPACE by THIX, Zones for Training with Exercise Intensity, Vanido, Ace Tennis and Havenly.
The iPhones may not rake in as impressive numbers as before, but perhaps the users are paying Apple more out of their phones than ever.
Lifestyle Apps as game-changers
Games and entertainment apps continue to lead in terms of top-grossing categories when it comes to apps. The major change however is coming in the form of Lifestyle apps which “have experienced over 70 percent growth in the past year” according to Apple. The biggest growth however was seen from photo and video app section which saw almost 90 percent of growth.
As a cumulative, Android handset makers have been outselling the iPhone for years in terms of smartphone unit sales. Apple however continues to be seen as a more profitable and more used platform when it comes to app use. The speculations that Google Play Store combined with Other Android based app stores will eventually takeover Apple by 2021 remains a strong market dynamic. Apple however is confident and defiant that it will remain in control of the app market.
“People everywhere love apps and our customers are downloading them in record numbers.” said Philip Schiller, Apple’s senior vice president of Worldwide Marketing, in a statement. He added:
“Seventy billion dollars earned by developers is simply mind-blowing. We are amazed at all of the great new apps our developers create and can’t wait to see them again next week at our Worldwide Developers Conference.”
With new payment methods and reaching out new markets, Apple is setting a good marker for Android to follow. Let’s see how far this battle for control goes.