Almost 70% of the revenue in the App Store is due to the sale of video games!
In recent years, the sale of services has been one of the main growth categories, when it comes to assess Apple’s revenue. They have been generated through the purchase of applications in the App Store, especially video games, to the point of being able to earn more in the sale of this item than companies one hundred percent dedicated to this, such as Sony and Nintendo.
The Wall Street Journal report relies on information released in court, during the Epic Games trial, and on data that Sensor Tower also shares periodically. They both estimated that Apple received $ 15.9 billion in revenue from the App Store during 2019, with 69% of that figure derived from games.
Apple is the number one selling video game
In this regard, Apple said that the operating margins discussed in the test came from an analysis that did not take into account the many joint costs associated with the App Store. Indeed, the analysis included all the revenue related to the game, but only a small fraction of the possible cost.
According to a Wall Street Journal analysis, Apple’s operating profit from gaming in fiscal 2019 was $ 8.5 billion. The figure based on the games sold by Apple is approximately $ 2 billion more than the operating profit generated by games during the same 12-month period by Sony, Activision, Nintendo and Microsoft.
The data for game companies comes from company filings, while Microsoft’s figure comes from an analyst estimate.
And although the result of the controversial trial was not entirely favorable for Apple, it does not affect the possibility of continue to grow at the same rate in the sale of video games, and continue to outperform the competition.
Related topics: Games
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