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Apple App Store To Beat Box Office Revenues In 2018

Based on the recent success of the Apple App Store over the holiday season, many expected that revenues from the App Store will pass global box office sales sometime in 2018. It’s believed that the milestone number that this will happen is somewhere around $40 billion in revenue. You can view the graph below to see exact point that it could happen. This graph was created by analyst Horace Dediu.

On 2018 New Year’s Day Apple has said that users had spent around $300 million on purchases on the App Store. If you include this number with the previous days between Christmas Eve and New Year’s Day, users purchased over $890 million over that 7 day window.


Apple’s App Store Vs Global Box Office Gross Revenue


Some interesting facts about Apple’s App Store that is mind-blowing:

  • Apple’s App Store will pass global box office revenue in 2018
  • Users are spending an additional $5 billion per year on the App Store since mid 2011
  • By 2019 App Store could hit half a trillion in revenue
  • The value of the App Store for Apple in 2017 is worth about $180 billion
  • App Store is close to becoming one of the largest enterprises around the globe
  • Spending in the App Store is about $100 million per day


Some other interesting facts about the App Store is that developers are also winning. In 2017 all developers got paid out by Apple around 30% ($26.5 billion) more than in 2016. Back in the summer of 2010, Apple paid its first billion to developers and since the creation of the App Store in July 2008, Apple has paid iOS developers more than $86 billion. Apple takes a percentage of 40% for transactions on the App Store and only 15% on subscriptions sales that occur on the App Store.

The reasoning for Dediu’s valuation of Apple’s App Store of $180 billion is because many of sales that occur with major companies like Google, Facebook, Amazon and Netflix actually happen outside of Apple’s platform. Since these transactions occur outside of the App Store, Apple doesn’t see any revenues from those transactions.


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