China Surpasses The US In iOS App Store Revenue

The U.S. is no longer the leader in iOS app store revenue. China shows $1.7 billion in revenues for Q3, beating the U.S. by 15 percent. Growth is largely due to games, but app subscriptions are expected to boost revenues from non-gaming apps, such as video streaming apps, like Tencent Video.

China has surpassed the U.S., and the rest of the world, and has the largest market for iOS app store revenues. The U.S. had been the global leader in app store revenue since 2010, but a new report from App Annie shows over $1.7 billion in revenues for China for Q3 2016, ahead of the U.S. by 15 percent.

Chinese consumers have increased their spending on apps fivefold in the past two years. China’s absolute revenue growth is also expected to exceed that of any other country by 2020.

App Annie has a habit of being right. At the beginning of 2016, the data intelligence firm predicted that, if China’s app store revenue growth continued on the same trajectory, it would surpass U.S. growth by year’s end.

China’s rapid growth is largely from games, and China has also increased its lead over the U.S. in gaming apps during the past quarter. Seventy-five percent of app store revenue come from games, although the majority of apps distributed from Apple’s mobile marketplace are non-game apps.

But growth is expected in non-game apps from revenues from app subscriptions. In China, there is already growth in books, photo and video apps, entertainment and social networking, and revenues from these apps have tripled year over year. Video streaming apps are growing especially rapidly thanks to apps such as iQIYI, Tencent Video and Youku.

Pokémon GO reached $600 million in revenues faster than any other app, 2.5 times faster than Candy Crush Saga. Although its popularity is waning a little, Pokémon GO still accounts for 45 percent of total in-app time compared with the remaining top 20 games.