China has been one of the most significant markets for Apple for quite some time. However, the world’s largest smartphone industry is set to be even more pivotal than U.S for the Cupertino-based company.
According to the app intelligence firm App Annie, China has surpassed even U.S to become the world’s largest market for App Store revenue. Based on the report, the country collected more than $1.7 billion in Q3 of 2016; 15% more than U.S. The U.S had been the top iOS market since 2010.
China Surpasses U.S to Become Largest Market for App Store Revenue
“China shattered iOS revenue records with the highest reported this quarter to date for any country. China also not only maintained its spot as #1 for Games (which it earned last quarter), it is now the largest market in the world for iOS App Store revenue, earning a record $1.7 billion.
Now leading the United States by over 15%, China’s growth is projected to climb further by 2020.” – App Annie.
iOS device users in China now spend whopping five times more than what they used to spend just two years ago. The world’s most populated country is going to drive the largest revenue growth for any country by 2020.
This massive growth in App Store revenue is thanks mainly to games which drive more than 75% revenue. Social networking, Photo & Video, Entertainment and books apps have also seen a huge growth as their revenue has more than tripled year-over-year.
As expected, Pokemon Go is the most downloaded app in the country; having amassed $600 million in revenue.
We expect the Chinese market will continue to dominate its counterparts from around the world. It would be interesting to know the sales of iPhone 7 and 7 Plus in the last quarter in the country.
Apple is set to announce its Q3 2016 earnings on October 27 during the “Hello Again” Mac event.
Stay tuned for all the latest happenings related to the upcoming Mac event.