The fallout from Apple’s announcement earlier this week that its quarterly revenues would be lower than predicted continues: the company’s share price tumbled by nearly 10% yesterday as markets reacted to the news.
Apple did put out some good news yesterday though: the latest festive figures for its App Store. “App Store spending topped $1.22bn between Christmas Eve and New Year’s Eve. Customers also spent over $322m on New Year’s Day 2019 alone, setting a new single-day record,” announced Apple. This, on top of what the company says was a record-breaking quarter for Apple Music subscription revenues, alongside other services including the App Store, Apple Pay, search ads on the store and Apple’s cloud services.
The (metaphorical) cloud on the horizon for the App Store ecosystem, however, are the moves by Netflix and Spotify to steer their customers away from in-app purchases to pay for their subscriptions: something that if it catches on with other popular apps, has the potential to put a dent in the App Store growth – although given the importance of games in this ecosystem, they are extremely unlikely to reverse the growth altogether.