The American tech giant started to take a smaller cut of App Store revenue if developers offer a subscription option. Apple said its subscription business grossed $2.7 billion. Apple also said that its new App Store search ads are effective with a 50% conversion rate.
Apple believes that 2017 will be a bigger year for its App Store business, which it sees as a critical way to keep revenue and margin up in the face of declining iPhone sales.
As a matter of fact, January 1st was a record-setting day, according to Apple, with $240 million in App Store purchases.
Customers broke all-time records during the past holiday season with purchases from the App Store topping $3 billion in December. In the same month, Nintendo’s “Super Mario Run” made history with more than 40 million downloads in just four days after its release, and was the most downloaded app globally on Christmas Day and New Year’s Day.
“Super Mario Run” is also among last year’s top 10 most downloaded apps worldwide, with “Pokémon Go” taking the top spot.
With the App Store available in 155 countries, Apple’s customers have access to millions of apps to make their lives easier, enrich their passions, and connect with people from all around the world.
The App Store’s top-grossing markets include the US, China, Japan and the UK, with China experiencing record year-over-year growth at an incredible 90%.