China has become Apple’s biggest market in terms of App Store avenue, according to mobile analytics and research firm App Annie. In its report, App Annie said that Chinese customers spent close to $1.7 billion on its App Store in the third-quarter of 2016.
In comparison to China, US accounted for close to $1.5 billion in App Store purchases during the same period. This means that China took a 15 per cent lead over United States in terms of revenue generated for Apple, with the Chinese growth expected to climb further up by 2020. According to Apps Annie, Chinese are now spending close to five times more than what they were just two years before.
According to the report, Chinese customers have been spending the majority of the amount on games – maintaining its number one spot in the list. Pokemon GO is one of the apps that help Apple reach the huge revenue target in China.
In addition to games, Chinese consumers spent on categories like Social Networking and Entertainment that have also tripled in revenue generated.
“Video streaming apps in China have had a major impact on the Entertainment category as a whole, and include further integrations into traditional cable spaces with investments in smart TV and original content,” the report read.
Back in July this year, Apple’s Chief Executive, Tim Cook said that Apple’s service business alone (App Store, Apple Pay and iCloud) will reach this size of a Fortune 100 company by next year. Revenue from Apple’s services have risen 19 per cent (to about $6 billion) for the third quarter of this year.