2019 was an important year for Apple, marking a big change in how it does business and where it makes its money. As a sign of the success of Apple’s pivot towards services, a record $1.42 billion was spent on the App Store between Christmas Eve and New Year’s Eve.
Throughout its history Apple has released various cornerstone products which have made it the company it is today.
But now Apple is looking to move away from hardware as the foundation of its business. Instead it wants to usher in an era of services
In a newsroom update posted yesterday, Apple outlined everything it achieved during what it called a ‘historic’ year.
Usually you could just pass that off as a bit of hyperbolic marketing speak. But when you look at the list of new products Apple released in 2019, you’ll realize Apple has some justification behind its ‘historic’ claim.
While Apple has released a number of new products in 2019, they’re pretty much all services-based.
Talking about the past year, Eddy Cue, Apple’s senior vice president of Internet Software and Services said: “2019 was the biggest year for Services in Apple’s history. We introduced several exciting new experiences for our customers, all while setting the standard for user privacy and security.”
Among the new products released by Apple last year were Apple TV+, Apple News+, Apple Card and Apple Arcade.
Apple sums up the new direction it is taking with products like these as ‘deep integration of hardware, software and services’.
Probably the biggest Apple product to launch last year was Apple TV+, which is Apple’s competitor to Netflix and Amazon Prime Video.
Apple released the new platform simultaneously in more than 100 countries with a number of Apple original series, such as “The Morning Show,” “Dickinson,” and “For All Mankind”.
Most of these new Apple products provide customers with a library of content, such as games, TV & film, music and news, for a monthly subscription cost.
The App Store
As the place where most of these products reside, the success of App Store is a good indicator of how well Apple is doing more generally.
Luckily for Apple and its shareholders, the App Store posted record numbers over this year’s Christmas period.
In total Apple says customers spent $1.42 billion between Christmas Eve and New Year’s Eve alone. That’s $1.42 billion in a week. In terms of performance compared to last year, this year’s Christmas period performance was 16% higher.
The performance of the App Store will be a very important indicator of how well Apple’s new business strategy is doing going forward.
Apple says that app developers have earned $155 billion from the App Store since 2008 when it was launched – a big incentive for continued innovation. Currently the App Store gets half a billion visitors each week, a figure which will only increase as more and more customers move towards Apple’s service-related products.