US iPhone Users Will Spend $88 Annually On Apps By 2020

Simon Edmunds 2nd November 20172nd November 2017 0 Comments

Apple iPhone users in the US are projected to spend $88 per year on apps by 2020.

This would be up from an estimated $63 in 2017 and $47 in 2016.

The data comes from a new forecast report based on Sensor Tower Store Intelligence data.

The report’s projections put calendar year 2019 per-device revenue at around 86% higher than 2016, and about 40% higher than forecasted average user spend in 2017.

Sensor Tower estimates that App Store users in the US are on track to spend an average of $63 on premium apps and IAPs this year, an increase of approximately 33% from the year before.

This is predicted to grow to $77 in 2017 and $88 by 2020.

The majority of this growth, however, is expected to come from the gaming segment.

In fact, gaming spend is predicted to make up nearly 70% of all app spending, despite gains from categories like entertainment.

Sensor Tower said: “Based on our models, we project that as much as $60 of the $88 we forecast will be spent in 2019 will go to premium games and game IAPs.

“Based on current trends, we expect Entertainment to overtake Music as the second-largest category of per-device spending this year, thanks to apps such as Netflix and HBO NOW, and grow its share of the projected $88 in 2019 to more than 9 percent, or at least $8, up from $2.80 in 2016.”