App Store Has First Drop in Downloads Since (At Least) 2015

That App store it goes on the stern and remains one of the big engines in Apple's (and increasingly important) “Servios” industry, everyone knows that. But that doesn't mean Ma's seemingly unshakable app store is immune to slight stumbling from time to time.

According to Morgan Stanley data published by Kif Leswing of CNBC, the App Store recorded, in the first quarter of this year, the first drop in the total number of downloads since at least 2015 (which is the year the company started recording this data). Compared to the same period of 2018, we had a 5% drop in downloaded or purchased apps.

Nevertheless, store revenue continued to rise and jumped 15% from the first quarter of last year: $ 3.7 billion generated by the App Store in the first quarter of 2019, which is within the industry's overall expectations, but slightly below the estimates made by Morgan Stanley for investors.

Apple's Numbers Boost: As proven by comparing the above data, consumers are spending more and more on every download made from the App Store. In fact, average spend per app went up 21% year-on-year, and (as expected) the gaming industry is a major driver of this growth. In China, in particular, spending on indefinite iPhone games has been growing at a rapid pace, giving Ma good margins.

Nonetheless, other industries demand attention: Entertainment, for example, is seeing a rapid slowdown in growth, especially with monthly payment services such as Netflix, removing subscription options within apps.

Maybe it's time for Apple to revise its profit-sharing policy?

via Cult of Mac