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Apple Recorded $1.8B Sales On App Store Over Holiday Week

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Apple Recorded $1.8B Sales On App Store Over Holiday Week

Apple Inc (NASDAQ: AAPL) said Wednesday that sales of digital products like apps on its platform skyrocketed during the holiday season.

What Happened: App Store customers spent $1.8 billion in the week extending from Christmas Eve to New Year’s Eve, with games driving most sales, the company said in a statement. 

Popular gaming titles this year included “Among Us” and “Roblox.”

See Also: Why Apple Is Removing Video Games From App Store In China

A record for single-day spending was made on New Year’s Day when users poured $540 million on digital products, as per Apple.

The Tim Cook-led company said that Zoom Video Communications, Inc’s (NASDAQ: ZM) video conferencing app and Walt Disney Company’s (NYSE: DIS) streaming app were among the most downloaded apps in 2020.

“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,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services.

Why It Matters: The Cupertino, California-based company recognized that apps have become “more essential than ever” in a year dominated by a raging coronavirus pandemic.

In November, the tech giant slashed its App Store fee to 15% from 30% as part of a program aimed at small businesses. 

The iPhone maker revealed that beginning this week many inaugural participants would join that effort called the App Store Small Business Program.

See Also: Apple Exempts Virtual Events From Paying 30% App Store Cut Through June

Apple’s product sales which make up for 77.5% of its total revenues shrank 2.7% as per the company’s fourth-quarter results but its services revenue rose 16.3% to $14.55 billion.

Price Action: Apple shares closed nearly 3.3% lower at $126.66 on Wednesday and gained 0.76% in the after-hours session.

 

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