Company / division: App Store
App Store Shatters Records on New Year’s Day – Apple (Jan 5, 2017)
These new numbers from Apple reinforce the sense that Service revenues, driven largely by the App Store, continue to be the company’s most consistent growth driver. Payments to developers were up 40% on 2015, for a total of $20 billion, while subscription billings alone were up 74% to $2.7 billion, or almost 10% of the total. That 40% year on year growth rate is fairly consistent over the past year or two, as the rise of IAP accelerated growth above levels in 2012-2013. All of this also reinforces Apple’s argument to Wall Street that Services will grow even as device sales falter.
This is the cost of doing business in China – a cost other companies have decided they’re not willing to bear. Apple has already had to shut down elements of iTunes in China, and now this. It’s not a great look for Apple in China, but this kind of thing is likely to continue to be a thorn in Apple’s side as it seeks to do business there. Striking a balance between avoiding censorship and doing just enough to stay in business there is tricky, and likely to offend quite a few people in the process.
Why Super Mario’s Run Was Short – WSJ (Jan 2, 2017)
The headline is overstating things – it’s not like Super Mario Run is done. But there are some good numbers in here – notably that 3% of the estimated 90 million downloads have converted to being paying users. At $10, that’s actually pretty high, and Nintendo will do just fine if it can keep converting new users at that rate. However, the poor reviews – many driven by the IAP model – may prevent Nintendo from continuously filling its funnel. Definitely some lessons here for future Nintendo mobile games.
Super Mario Run breaks records with 40 million downloads in its first 4 days | TechCrunch (Dec 21, 2016)
The numbers are huge, as expected – that’s a lot of downloads, but it’s worth remembering that this was a free download of a game with lots of nostalgia value. Unlike Pokemon Go, this year’s other big Nintendo-backed mobile game, Super Mario Run has eschewed the standard IAP business model, and reviews have been terrible as a result. What really matters is paying users and regular users after the initial hype dies down.