Apple App Store Sales Touched A Record $1.42 Billion Between Christmas, New Year
Cupertino tech giant Apple Inc's struggles with the iPhone's upgrade cycle have forced it to look towards other avenues for revenue growth. Under the leadership of its current C.E.O. Mr. Tim Cook, Apple has doubled down on efforts towards providing its users with software-based services. These cover a wide array of domains, from financial support to music and entertainment. The investment paid off in the company's latest fiscal year, with Services, Wearables and iPad growing cumulatively by $16 billion in revenue, but still falling short by $7 billion of the $23 billion in revenue drop reported by the iPhone.
Additionally, while Apple (NASDAQ:AAPL) has put its efforts behind services such as Apple Pay, Apple Card and Apple News+, the bulk of growth in Services reported by the company in its fiscal year 2019 came from App Store sales, licensing and AppleCare. On that note, the company is out with some fresh sales figures for the App Store today, so take a look below for more details.
Apple Reports Sales From App Store Touched $1.42 Billion Between Christmas & New Year, Setting An All-Time Record
Today, Apple is reporting that in the days between Christmas and New Year's eve, user purchases on the App Store touched a new record of $1.42 billion and marked an increase of 16% year-over-year. In addition to this, a staggering $386 million was spent on New Year's Day alone, for a 20% year-over-year increase and a new all-time daily record.
Given that Apple (NASDAQ:AAPL) earns a 30% commission from app and first-year subscription sales, the figure lets us roughly estimate the company's earnings from the App Store in this time period. This translates into 426 million in revenue for the seven days between Christmas and New Year, and approximately $40 million in daily revenue for the company.
The holiday quarter has historically been Apple's most important quarter, especially due to the company's September-based launch timeline for the iPhone lineup. To put today's numbers into perspective, Apple earned a cool $10.875 billion from Services in the three months ending on December 31st, 2018. Therefore, the sales reported by Apple (NASDAQ:AAPL) during the seven days between Christmas and New Year's Day mark 13% of the total services revenue that the company earned in its first fiscal quarter of 2019.
In addition to providing details related to revenue, Apple also shared some figures on how its new service ecosystem is faring and what the company is planning for the future. It hopes to play a bigger role in covering the upcoming presidential debate, increase the scope of Apple Pay and Apple Card to cover public transportation and add more content to Apple Arcade.
The company's stock price has grown massively of late and is not exhibiting any signs of slowing down as we head towards a crucial earnings release later this month. Apple closed at $299.80 on Tuesday, just 96 cents short of a one-year high close of $300.35.