In a recent disclosure to market analysts, Apple officially declared that it had made over 28 billion dollars in 2016 in just its App Store alone. App Store revenue has soared over the past several years based on rising sales of its mobile products and services. But that’s just part of the story and a fraction of the money made by this tech giant.
Very few companies in the world would have witnessed such a growth in their revenues and profits. These numbers prove a simple point that how focus on few world-class products can change the fortune of a company. Apple launched iPod in October 2001, iPhone in June 2007, iPad in April 2010, and improved versions of these products almost every year. These three products, especially the iPhone, have contributed to majority of the Apple revenues over the past decade. To look at the success of Apple all you need to do is appreciate the fact that Apple brings in about $70,000 in profit every 60 seconds.
So, at the heart of all of their mobile products is the App Store. Most of the app on the App store are created by developers who see a need for a particular app, create it and submit it to Apple to be included in their App store. At the moment, the App store offers 2.2 million apps, up more than 20 percent from a year ago. For the most part, Apple gets 30 percent of App Store sales with developers getting 70 percent and in 2016 revenue was around 28 billion dollars. On New Year’s Day, Apple said its App Store delivered more than $240 million in purchases. Sales from the App Store topped $3 billion just for the month of December with the help of the new Nintendo app Super Mario Run.
Overall, the App Store represents just a fraction of Apple’s overall sales, which was a total of $215.64 billion during its fiscal year ending Sept. 24, 2016. Most of the money Apple now makes is heavily based on their iPhone in which they sell about 45 million per quarter making them about 28 billion dollars every fiscal quarter. Not to say they seem to have all of their eggs in one basket but based on these numbers I’d bet on more of their innovation and research and development going into their phone and iOS before it trickles down to their other products and services.