Apple’s App Store generated more revenue in 2016 than McDonald’s

App Store

Earlier this month, Apple provided us with some updated numbers regarding the App Store and, suffice it to say, business is booming. Throughout 2017, Apple notes that it paid out $ 26.5 billion to developers, a solid increase from the $ 20.3 billion Apple doled out to developers in 2016. All told, Apple has cumulatively paid out more than $ 86 billion to developers since the App Store opened in July of 2008. And once we take Apple’s 30% cut into account, Apple’s App Store has generated a staggering $ 122.8 billion in sales over the last nine and a half years.

The figures above are impressive, but they’re also so big that it can become challenging to truly appreciate just how impactful and successful the App Store has become. That being the case, a recent piece from Horace Dediu provides us with some insightful data in order to help us contextualize the importance of the App Store to Apple’s bottom line.

Dediu observes that Apple now pays more out to developers than McDonald’s earned in revenue throughout 2016. Dediu also note that the App Store is now a bigger business than the entirety of the film industry.

  • Developer payment rate is now above $ 25 billion/yr. I’ve been notified via Twitter that this is higher than the revenue of McDonald’s Corporation in 2016.

  • During this year iOS users will be spending about $ 100 million per day for Apps. This was Google’s AdWords revenue rate in 2012.

  • The spending on App Store has been rising steadily, adding about $ 5 billion/yr since mid 2011.

  • Apps are the biggest component of Apple services and helped that segment gross over $ 57 billion in 2017, passing Fortune 100 level (net of developer payments).

Beyond revenue earned by Apple and paid out to developers, Dediu astutely notes that Apple’s influence on the mobile economy is even bigger than the already impressive figures would have you believe. To this point,  many of the apps on the App Store serve as “front-ends to complex services” which are monetized in a myriad of ways. From Netflix and AirBnB to YouTube and Instagram, the notion of the App Store economy being an entity unto itself has never been more legitimate.

Apple – BGR

Everlane’s first store is temporarily closed because its flooring couldn’t handle a New York winter

Physical retail? Perhaps not so easy.

Everlane’s transition from online retailer to brick-and-mortar retailer is off to a rocky start.

The popular millennial fashion brand announced to its customers today that it was temporarily closing its first store, located in New York City, only 42 days after it opened.

The No. 1 reason: the store’s white floors were probably a bad call.

“They’re white. It’s winter,” the company said in an Instagram post. “We got three times more foot traffic than expected. It’s a whole thing.”

An image of a cracking, blackened floor from Everlane’s New York store Everlane on Instagram
These floors were one reason why Everlane said it was temporarily closing its first retail store.

The company also said it needed to fix cracks and a paint job by the entrance, and add lighting to its dressing rooms. Oh, it’s going to add more selection, too.

But a flooring change seems to be the only one that would necessitate shutting the store down completely. The store will re-open on January 24.

Everlane is just the latest digital-first retailer to eventually turn to permanent physical space to get its product into the hands of potential new customers and build more brand awareness. Retail startups from Warby Parker to Glossier to Bonobos started by selling their products exclusively online before setting up brick-and-mortar locations.

The San Francisco-based company launched in 2011 and is known for its minimalist, contemporary aesthetic popular with the millennial generation, as well as transparency around pricing and the warehouses where its clothing is made.

Recode previously reported that the company was projecting annual sales of about $ 100 million back in 2016.

Recode – All

Apple’s App Store revenues poised to beat global movie ticket sales in 2018

Article Image

Barring a sudden drop in demand, revenues from the App Store are likely to eclipse worldwide box office revenues sometime this year, according to one analyst.
AppleInsider – Frontpage News