Apple App Store Earns $1.22B During Holidays, But Stock Still Struggles

Yolanda Curtis
January 4, 2019

While it is unclear as to why Netflix has removed the iTunes billing option, it appears that Apple apparently takes a 15 percent cut of recurring in-app subscriptions done through iTunes accounts on iOS devices.

App Store revenue from services helped drive all-time record highs at Apple, setting a new record for holiday spending.

A Netflix spokesperson confirmed that the company no longer supports iTunes as a method of payment for new users. Existing members who now use iTunes as a method of payment can continue to do so.

Consumers spent more than $1.22 billion on apps and games between Christmas Eve and New Year's Eve. Apple isn't likely to retaliate based on its history with other tech companies that sought to avoid the so-called "Apple tax", TechCrunch reported.

We already know that Google is working on a successor to Android.

Categories in the App Store, Apple Music, Cloud Services, Apple Pay and the App Store's search ad business contributed. The latest Android 9.0 Pie which was introduced past year is available on less than 0.1% devices.

To be clear, that doesn't mean that Netflix is being pulled from the App Store. Apple's paid subscription revenue grew more than 60% in the past year to about $300 million as more than 30,000 apps started charging recurring fees, CEO Tim Cook said in a July conference call with investors.

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