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Apple App Store: Sales remain stable despite declining downloads

Apple App Store: Umsatz bleibt trotz sinkender Downloads stabil

The App Store is for Apple even after about eleven years a guarantor for gushing revenue. Now, however, for the first time since 2015, the company had to accept a decline in download numbers. This is from information from the analysts of Morgan Stanley.

For example, compared to the previous year, users downloaded around five percent fewer applications for their iOS devices. However, as revenue per app has increased significantly according to the analysts, the decline for Apple has no negative impact on sales. Net sales in the App Store are expected to be around $ 3.7 billion, according to March quarter figures. Analysts had previously assumed sales of $ 3.8 billion.

Entertainment area with sometimes significant increases

This stability is not least attributable to the entertainment sector, which is the second largest category in the App Store after the games without music and which has shown steady growth in the last four years. Thus, the gain in the last December of last year compared to the previous year was 76 percent, in the current March quarter, for which Apple wants to publish figures at the end of the month, the increase, however, has shrunk to 26 percent.

China could provide further growth

The focus on the Chinese market is also bearing fruit. Even if Apple struggled with sales of its Chinese-expensive iPhones in the last quarter, the App Store in China was able to gain significantly. If the total revenue in the December quarter compared to the previous year already increased by nine percent, the increase in the last three months is ten percent.

Another positive effect is that the Chinese authorities are considering approvals for 30 imported games, such as Fortnite, Call of Duty Mobile and PUBG, which are expected to be issued in the near future after no more permits have been issued since March 2018. An availability of the games in the Chinese App Store is expected to coincide with a renewed growth in both download numbers and sales.

New focus on services shows first success

Due to the steadily declining sales in its own smartphones division, Apple has begun some time ago to undergo major restructuring of the company, which is said to have been the most pronounced since the early years of Tim Cook as CEO and which focuses primarily on new ones Lay services. This new direction could already pay off, because generally Apple should have generated with its service area in the past quarter sales of 11.5 billion US dollars, which would correspond to an increase of 17 percent over the previous year. Analysts could still be disappointed, but it was forecasted sales of 11.6 billion US dollars.

The new Apple TV +, Apple News + and Apple Arcade, which Apple recently introduced, will also play their part in the growth of the service sector, according to the analysts, but due to the launch year and its low distribution, the share will initially amount to just one percent an expected increase of three percent next year. While great hopes are being placed in the new streaming service and the gaming flat rate, the euphoria at News + is rather subdued, not least due to the low participation of publishers with daily newspapers.

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