Home Insights News Revenue of Apple Services are Most Likely to Rise During Fiscal 1Q18

Revenue of Apple Services are Most Likely to Rise During Fiscal 1Q18


App store stacked up to $890 million in the last week of 2017 from Christmas Eve to New Year’s night of 2017. According to an Apple Insider’s report, it has been approximated that consumers spent $300 million on the first day of 2018 on top of it. $26.5 billion was paid to iOS developers from Apple in 2017 which makes up about 30% YoY (year-over-year) growth in comparison with 2016, as told by Phil Schiller who is the head of marketing at Apple.

Apple usually takes about 30% out of its over all App Store sales. Even though Google’s PlayStore is more common as it is present in a larger number of devices as compared to Apple’s App Store but PlayStore still generates significantly less profit as compared to App Store.

It is very likely that App Store’s revenue might rise above the revenue of global box office during this year (2018). Revenue of Apple’s App store is expected to grow much more than it is right now, such is suggested by a Horace Dediu blog post, who is an analyst of this industry and he keeps a keen look on Apple, Apple’s smartphones as well as other smartphones. Revenue of Apple’s App Store grew very rapidly during last few years as it exceeded all expectations. This growth was exponential and it is expected that its collective revenue will reach $40 billion in just a few years.

Horace Dediu expects the App Store’s value to be larger economically because most of its applications have a front-end strategy for their advertisement related activities. Apple’s App Store is expected to be valued around $180 billion in worth as stated by Horace Dediu.

Apple’s services section is the company’s major driver of revenue rise in previous two years. This section crossed the $7 billion milestone for four times in a row in 4Q17. A great number of businesses including App Store, Apple Music, Apple Pay, itunes and Apple care help this section to raise revenues and take the company forward.