Apple’s App Store customers spent record $540m on January 1

During the week between Christmas Eve and New Year’s Eve, the company generated $1.8bn in App Store sales

Apple’s services business generated $53.8 billion, almost 20 per cent of the total earnings, in the company’s last fiscal. AFP

Customer spent a record $540 million, up 40 per cent compared to last year, on Apple's App Store on January 1, the company said in its annual services report.

This was the highest single-day spending on App Store in the history of the Cupertino-based company.

During the week between Christmas Eve and New Year’s Eve, the iPhone manufacturer generated $1.8 billion in App Store sales that was driven largely by spending on games.

“Now more than ever before, customers around the world have found inspiration and value in the breadth and quality of Apple’s services, which have impacted their lives in big and small ways every day,” Eddy Cue, the company’s senior vice president of internet software and services, said.

“We are incredibly optimistic about where we are headed, and we believe that the opportunities for developers and the creative community are endless, as are the positive and meaningful benefits to our customers,” he added.

Overall, Apple's services business generated a revenue of $53.8bn, almost 20 per cent of the total earnings, in the company's last financial year that ended on September 26, 2020.

As the world navigated a new normal of virtual learning, grocery deliveries and drive-by birthday celebrations, customers relied on Apple services in new ways, the iPhone maker said.

Customers turned to “expertly curated apps, news, music, podcasts, TV shows, movies, and more to stay entertained, informed, connected, and fit”.

Last year, Apple said it had 1.5 billion active devices, a jump from 1.4 billion devices in 2019.

Apps have become more popular following the coronavirus-related travel restrictions and lockdowns. Besides entertainment, developers found new ways to keep people connected and help them learn and work from home.

Among 2020’s most downloaded apps were Zoom and Disney+.

Apple Books saw remarkable growth in new customers and draws over 90 million monthly active users as pandemic led to more people buying audio books and e-books.

Independent developers selling digital goods and services have earned more than $200bn since the App Store launched in 2008, Apple said.

The company also launched an App Store small business programme from January 1. It reduces App Store commission to 15 per cent for small businesses which are earning up to $1 million per year.