Apple’s move to get developers to move to a subscription-based model for apps on the App Store seems to be paying off. A Sensor Tower report says that revenue generated by per active U.S. iPhone user grew by 36 percent — from $58 in 2017 to $79 in 2018.
That’s higher than the 23 percent growth registered from 2016 to 2017 but still lower than the 42% growth posted between 2015 to 2016.
Apart from the new subscription model, games also played a key role in increased user spending. Games accounted for almost 56 percent ($44) of the average $79 spent by every U.S. iPhone user.
Non-gaming categories also saw a healthy increase in their per-user generated revenue thanks to the use of a subscription model. The Entertainment category saw its revenue jump by 82 percent, from $4.40 in 2017 to $8 in 2018. Similarly, Music and Social Networking apps saw a 22 percent increase in per-user generated revenue, while apps in the Health category saw spending increase by 75 percent YoY in 2018.
With iPhone sales slowing down, Apple is now relying more on its Services sector for growth. An increase in user spending in apps bodes well for the company in this regard. App developers should also see this as a positive sign and perhaps consider switching to a subscription-based model for their apps and games.
The App Store posted single-day record revenues of $322 million on 1st January 2019 and raked in over $1.22 billion during the holiday week. This shows just how popular and important the App Store is turning out to be for Apple from a revenue viewpoint. No wonder then that the company is getting strict in its vigilance of apps that make it to the store.