newitunes122logoDuring today's third quarter earnings call, Apple CEO Tim Cook highlighted App Store sales, noting that the iOS and Mac App Stores saw their best quarter ever, with a 24 percent growth in revenue. The number of transacting customers also grew by 19 percent.

The services category, which includes the App Store, iTunes, Apple Pay, AppleCare, and other licensing/service fees, generated a record $5 billion revenue during the quarter, up from $4.5 billion during the year-ago quarter.

Apple's iTunes Store has become an increasingly important revenue source for Apple in recent years, largely due to the ever-growing popularity of the App Store. China has been an important factor in the App Store's recent growth, with App Store revenue more than doubling in the country during 3Q15. Chinese developers have created more than 250,000 apps, according to Apple CFO Luca Maestri.

Overall, Apple saw revenue of $49.6 billion during the quarter, with a net profit of $10.7 billion, or $1.85 per diluted share. The company sold 47.5 million iPhones, 4.8 million Macs, and 10.9 million iPads.

Top Rated Comments

AngerDanger Avatar
AngerDanger
136 months ago
No, no, no, this won't do. Most of the apps on the App Store are fart apps, Flappy Bird clones, and freemium junk. They are because I say they are.
Score: 2 Votes (Like | Disagree)
keysofanxiety Avatar
keysofanxiety
136 months ago
No, no, no, this won't do. Most of the apps on the App Store are fart apps, Flappy Bird clones, and freemium junk. They are because I say they are.
Wait, so you're telling me that my new 'Flappy Fart' app (pay $0.69 per jump) isn't likely to do well? :(
Score: 2 Votes (Like | Disagree)
Chuck Kostalnick Avatar
Chuck Kostalnick
136 months ago
Just going to say this...Hearthstone released like a couple months ago. Might have contributed a little. Also Fallout Shelter from that Fallout 4 hyped.
Neither one of those apps are in the Top 25 Grossing apps in the App Store, so probably not. Look at the freemium games, like Clash of Clans, Game of War, and Candy Crush for the bumps in revenue.
Score: 1 Votes (Like | Disagree)
warfed Avatar
warfed
136 months ago
I buy Apple's Apps through the Mac App Store, I buy all my other Apps from the developers website themselves as I don't like the whole App Store model.

As for iOS, I'm waiting for web based applications to make a comeback so I don't use that either.

Who's with me!? Anybody? Anybody?

I'll get me coat!
I'm the opposite, I prefer buying the apps on the app store. No CD Keys and I can install apps on as many devices as I want.
Score: 1 Votes (Like | Disagree)
2457282 Avatar
2457282
136 months ago
The unfortunate interpretation on these results is that the freemium model is working and driving revenue. I say unfortunate because, for me, it is a little annoying that I get something for free or close to it and then have to keep paying for upgrades. I prefer paying full price once and never again. But clearly I am in the minority. In any case, good numbers for Apple which is why their stock tanked overnight -- Make a huge profit, more than anyone one else in the space, or any space for that matter, and get punished for it. Love the stock market mentality. /s
Score: 1 Votes (Like | Disagree)
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