Connect with us

Tech

Apple's App Store had gross sales around $50 billion last year, but growth is slowing – CNBC

Published

 on


Tim Cook, chief executive officer of Apple Inc., speaks during the Apple Worldwide Developers Conference (WWDC) in San Jose, California, U.S., on Monday, June 4, 2018. 

David Paul Morris | Bloomberg | Getty Images

Apple announced Wednesday that it has paid $155 billion to developers since 2008, up from $120 billion disclosed in January 2019. That means the company’s App Store had total sales maxing out at $50 billion in 2019, assuming developers take 70% of app sales, and generated about $15 billion in revenue for Apple, according to analysis by CNBC.

The statistic came as part of a broader announcement from Apple meant to show momentum for its so-called “services” business, which is increasingly seen by investors and analysts as a key segment for the iPhone maker. That business also includes subscription content services such as Apple Music and Apple TV+, iPhone warranties, and licensing revenue, such as the fee that Google pays Apple to make its search engine the default on the iPhone. Overall, the business generated revenue of $46.2 billion in the company’s last fiscal year, which ended Sept. 30, 2019.

Apple doesn’t disclose the total amount of revenue its App Store makes per year. But it has published stats about its App Store every January since 2013, including the total amount of money it pays to developers. Developers get 70% of the purchase price of an app on the App Store, rising to 85% in the second year of a subscription, which affects a relatively smaller proportion of apps. With that information, it’s possible to estimate total maximum App Store sales from the amount paid to developers.

Based on the stats Apple disclosed, it paid out $35 billion to developers in 2019, suggesting total sales of $50 billion.

At $50 billion in total sales per year, the App Store alone would be no. 64 on the Fortune 500, ahead of Cisco and behind Morgan Stanley.

But the annual disclosure also suggests that growth for the App Store is slowing. In 2019, Apple paid developers $35 billion, only 2.9% higher than the 2018 figure of $34 billion, and a significant slowdown from the payout’s 30% growth rate in 2017.

Apple disclosed several factoids related to subscriptions it launched in 2019, but it did not include any viewership statistics for Apple TV+, the streaming service launched earlier this fall, nor any subscriber statistics for Apple Arcade, its game subscription.

Other stats disclosed on Wednesday include:

  • App Store collected $1.42 billion in sales between December 24 and 31
  • The record for most revenue from one day on the App Store is $386 million, set on Jan 1 2020
  • 50% of Apple Music users have used a new lyric syncing feature
  • Apple News has over 100 million monthly active users in the U.S., U.K., Australia and Canada
  • Apple Podcasts has over 800,000 shows
  • 75% of iCloud users use two-factor authentication, a login method that makes it harder for attackers to control your account

Let’s block ads! (Why?)



Source link

Continue Reading

Tech

Enter the Zuckerverse? Social media churns with new names for Facebook

Published

 on

Zuckerverse. Timesuck. Faceplant.

They’re just a few of the suggestions being bandied around online following reports that Facebook plans to rebrand itself with a new group name. The company refused to comment on rumor or speculation, of course, but the Twitterati had no problem.

The debate careered from sensible to screwball to strange.

“Meta” was one of the more sober trending suggestions, referring to Facebook’s reported desire to assume a name that focuses on the metaverse, a virtual environment where users can hang out.

Bookface, Facegram, Facetagram, FreeFace, FreeTalk, World Changer.

On the wilder side, Twitter user Dave Pell drew a comparison with musician Kanye West who recently changed his name to “Ye”.

“It would be awesome if Facebook changes its name to  Ye,” he said.

Several humorous suggestions reflected online speculation that the alleged rebrand was driven by founder Mark Zuckerberg’s yearning to make Facebook “cool” once more.

The platform has been deserted by many younger users who have moved to apps like Instagram, Snapchat and TikTok, and has become increasingly populated by older people.

“Teenage Wasteland”, one wit suggested.

“The Old People’s App because that’s what us younger people call it,” college student Vittoria Esteves told Reuters in Rome.

“Boomerville”, suggested Marco, referring to so-called baby boomers born in the years following World War II.

‘STREISAND EFFECT’

The online naming feast was sparked by a report on the Verge tech site that a newly named group would act as a parent for all the company’s brands, including Facebook itself, Instagram and WhatsApp, and reflect a focus on virtual and augmented reality.

An announcement is expected next week, according to the report.

Many suggestions however reflected the public’s concern about how the company handles user safety and hate speech. Internal documents leaked by a whistleblower formed the basis for a U.S. Senate hearing last week.

“Fakebook”, for example. Tracebook.

Other people were sceptical whether a name change would be enough to detract from the growing legal and regulatory scrutiny that has tarnished the company’s reputation.

“It’s going to be the Barbra Streisand effect thing going on,” said 20-year old Glasgow student Thomas van der Hoven, referring to the phenomenon where seeking to suppress something inadvertently turbo-charges popular interest in it.

“So they’re going to try and change it, and then that’s just going to put the spotlight on the fact that they’re changing it. Why are they changing this?” he added. “So it’s probably going to spit back in their face at some point.”

 

(Reporting by Nivedita Balu and Antonio Denti; Additional reporting by Reuters newsrooms; Writing by Josephine Mason; Editing by Pravin Char)

Continue Reading

Business

Tesla says new factories will need time to ramp up, posts record revenue

Published

 on

Tesla Inc said on Wednesday its upcoming factories and supply-chain headwinds would put pressure on its margins after it beat Wall Street expectations for third-quarter revenue on the back of record deliveries.

The world’s most valuable automaker has weathered the pandemic and the global supply-chain crisis better than rivals, posting record revenue for the fifth consecutive quarter in the July-to-September period, fueled by a production build-up at its Chinese factory.

But the company led by billionaire Elon Musk faces challenges growing earnings in coming quarters due to supply chain disruptions and the time required to ramp up production at new factories in Berlin and Texas.

“There’s quite an execution journey ahead of us,” Chief Financial Officer Zachary Kirkhorn said, referring to the new factories.

Price fluctuations of raw materials such as nickel and aluminum had created an “uncertain environment with respect to cost structure”, he added.

Even so, he said Tesla was “quite a bit ahead” of its plan to increase deliveries by 50% this year.

“Q4 production will depend heavily on availability of parts, but we are driving for continued growth,” he said.

Tesla shares, up about 23% this year, were down about 0.6% in extended trade late on Wednesday.

Musk himself was not present on the quarterly earnings call for the first time, a development that may have disappointed those investors keen to hear the celebrity CEO’s latest thoughts.

Third-quarter revenue rose to $13.76 billion from $8.77 billion a year earlier, slightly beating analyst expectations according to IBES data from Refinitiv.

Tesla’s automotive gross margin, excluding environmental credits, rose to 28.8%, from 25.8% the previous quarter.

Tesla’s overall average price fell as it sold more lower-priced Model 3 and Model Y cars, but it raised prices in the United States.

The company posted robust sales in China, where its low-cost Shanghai factory has surpassed the Tesla factory in Fremont, California, in terms of production.

Tesla also said it intended to use lithium iron phosphate (LFP) battery chemistry, which is cheaper than traditional batteries but offers lower range, in entry-level models sold outside China. Analysts said this would help keep costs down and address shortages.

It expected the first vehicles equipped with its own 4680, bigger battery cells to be delivered early next year, although it did not say which model would be fitted with them. Musk said in September last year that using its own cells would let Tesla offer a $25,000 car in three years.

In the third quarter, Tesla posted $279 million in revenue from sales of environmental credits, the lowest level in nearly two years. The company sells its excess environmental credits to other automakers that are trying to comply with regulations in California and elsewhere.

 

(Reporting by Hyunjoo Jin in San Francisco and Subrat Patnaik in Bengaluru; Editing by Matthew Lewis and Stephen Coates)

Continue Reading

Tech

Samsungs Galaxy Z Flip 3 Bespoke Edition lets users customize their phone – MobileSyrup

Published

 on


Samsung is letting customers customize their handsets with a new ‘Bespoke Edition’ of the foldable Galaxy Z Flip 3.

The Bespoke Edition lets users configure the foldable smartphone with one or two frame colours (black or silver) and five-panel colours, including ‘Black,’ ‘White,’ ‘Yellow,’ ‘Pink’ and ‘Blue.’

The Bespoke Edition will be available starting October 20th for $1,399.99 CAD.

Samsung says altogether this gives users 49 different colour combinations.

[embedded content]

Additionally, the South Korean company will let users change their device’s colours after purchasing the smartphones with ‘Bespoke Upgrade Care.’

There will also be the Galaxy Watch 4 Bespoke Studio wearables that let users customize their smartwatch before purchasing. It seems like the Z Fold 3 isn’t getting a Bespoke Edition, which is odd considering it was possible to change the frame of the Z Fold 2.

The Bespoke Studio starts at $329.99 for the 40mm variant and the $459.99 for the 42mm version.

Samsung also announced a collaboration with the designer brand Maison Kitsuné that includes special brand editions of the Galaxy Buds 2 and Galaxy Watch 4. The special edition designs include cute fox branding on both the watch and buds.

The Maison Kitsuné 40mm Galaxy Watch costs $529.99. And the Maison Kitsuné Edition Galaxy Buds 2 costs $349.99.

The South Korean tech giant is also releasing a Galaxy Watch 4 update that lets users customize their watch faces and the mix and match complications. This update brings gesture controls and the ability to activate an app with a knock-knock motion on your wrist.

To learn more about the Galaxy Z Flip 3, check out my review of the foldable smartphone.

Adblock test (Why?)



Source link

Continue Reading

Trending