The Average American iPhone User Spent $79 USD on iOS Apps in 2018: Sensor Tower

As Apple ^(https://www.appmarsh.ca/news/apple-ar-casanova/) looks to increase Services revenue from existing iPhone users, a forthcoming report notes that average in-app spending continues to climb higher each year, more than doubling since 2018.

TechCrunch ^(https://appmarsh.com/2019/02/11/us-iphone-users-spent-79-last-year-up-36-from-2018/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29) reports that iPhone users in the U.S. spent $79 USD last year compared with $58 in 2018, citing a forthcoming report from mobile app analytics specialist Sensor Tower ^(https://sensortower.com/). The reported noted that last year’s spending was lower than the 42 percent boost recorded between 2018 and 2018 when revenue went from $33 USD to $47.

Gaming ^(https://www.appmarsh.ca/news/fortnite-registered-players/) has long been the biggest driver of spending on mobile platforms, representing over half of all spending. However, other categories are now starting to see an upside, particularly subscription-based apps, according to the report. In fact, the entertainment category posted the strongest growth in 2018, with average spending skyrocketing by 82% to $8 USD, making it the second-largest category behind gaming. Music came in third, representing an estimated $5 USD worth of the spending.

Lifestyle apps increased by 86 percent to reach $3.90 USD, and Health & Fitness apps went up 75 percent for an average of $2.70, while Music and Social Networking apps both grew by 22 percent.

Subscription-based apps have also proven to be lucrative for app developers as they provide a recurring and relatively stable source of income, whereas one-time or in-app purchased will usually taper off. It’s important to keep in mind that subscriptions can only be pushed to a certain extent before customers with limited budgets no longer find worth in a service. Last month, the tech giant changed the guidance for in-app subscriptions ^(https://www.appmarsh.ca/news/apple-guidelines-in-app-subscriptions/), upgrading the design to make it easier to find clear and detailed rules.

With iPhone sales slowing down, Apple’s App Store is a major revenue driver for the Cupertino company ^(https://www.appmarsh.ca/news/apple-va/) in its services category — which also includes Apple Music, Apple Pay, iCloud, App Store Search ads, AppleCare and more — with app purchases continually setting new revenue records. The App Store hit a new single-day revenue record on New Year’s Day, with customers spending a whopping $322 million USD.