Takeaways From Apple’s New App Store Study, Apple's Ongoing Fight Against App Store Fraud, App Durability
Hello everyone. Instead of sending this update late last night, I decided to hold on to it until Friday morning.
Ahead of this year’s WWDC, Apple released a new study regarding App Store billings and sales. Earlier in the week, new data points regarding Apple’s efforts to protect developers and customers from fraud in the App Store were also released. We will talk about both topics in today’s update.
A quick update on where things stand with my new podcast, AVALON.
The first episode goes live on Tuesday. Instead of chasing sponsorships and ads, AVALON will be 100% supported by its listeners. A standalone subscription, not connected to Above Avalon membership, will be just $10 per month (or $100 per year). If you know someone who would be interested in the podcast, especially if they are new to Above Avalon, word of mouth is greatly appreciated. AVALON price discounts are available for Above Avalon members. If you have the Podcasts add-on, AVALON will be free. If you don’t have the Podcasts add-on, AVALON will be just $6 per month (or $60 per year) - you can use this form to sign up.
All members with the Podcasts add-on attached to their membership prior to Wednesday were sent a welcome email from “Neil Cybart (via Transistor)” on Thursday. To listen to AVALON, open that welcome email and select your preferred podcast player. One way of knowing that everything is up and running is you will see a short sneak peek episode appear in your podcast player. For members who recently filled out forms to either attach the Podcasts add-on to their membership (form available here) or subscribe to AVALON (form available here), those requests will continue to be fulfilled today (Friday) and tomorrow (Saturday). Thank you for your patience during this initial rush period.
With that, let’s jump into today’s update.
Takeaways From Apple’s New App Store Study
Yesterday, Apple released a new App Store study. Similar reports have been published over the years. Like the prior reports, this latest report was funded by Apple.
Two points that Apple wanted to draw attention to:
Most billings and sales facilitated by the App Store involve no commission being paid to Apple. Instead of this being a new disclosure or development, it’s a fact that continues to fly under the radar. Likely due to the news flow revolving around high-profile App Store courtroom battles, consensus likely assumes most developers pay Apple via in-app purchases (IAP) to have their apps available in the App Store. The courts and regulators have focused primarily on IAP (App Store “billings”) as large companies try their best to wrestle power away from Apple to earn more money – it’s always been about the money with these companies despite PR campaigns that say otherwise. The numbers suggest less than 10% of U.S. billings and sales facilitated by the App Store involve a commission being paid to Apple. The report defines billings as payments tied to app monetization (paid downloads, IAP etc.) while sales, a much larger total, refers to payments spent on buying goods and services.
U.S. developers saw earnings double over the last five years.
Become a member to continue reading today’s update. Already a member? Read the full update here.
An audio version of this update is available to members who have the podcast add-on attached to their membership.
Member Privileges and Benefits
Become an Above Avalon member and receive the following privileges and benefits:
Exclusive Analysis. Receive the Above Avalon Daily newsletter, widely-recognized as the leading daily newsletter dedicated to Apple. Now in its tenth year.
Archive Access. Access previous newsletters sent to members.
Member Forum Access. Access all channels in the Above Avalon forum in Discord.
Email Access. Receive timely responses from Neil to email inquiries.
Access to Add-ons. Customize a membership with the Podcast, Inside Orchard, and Financial Models add-ons.
Above Avalon Support. Play an active role in supporting Above Avalon as an independent voice and resource.
Apple Touts Fraud / Spam Prevention Efforts with App Store, Microsoft Issues Profit Warning, Elon Musk Gives Return to Office Ultimatum
Today's Above Avalon daily update includes the following stories:
Apple Touts Fraud / Spam Prevention Efforts with App Store
Microsoft Issues Profit Warning
Elon Musk Gives Return to Office Ultimatum
We begin today’s update with Neil’s thoughts on Apple drawing attention to its fraud and spam prevention efforts with the App Store. The discussion then turns to Microsoft issuing a profit warning on FX. We go over the differences between Microsoft’s and Snap’s warnings and how FX swings would impact Apple. The update concludes with Elon Musk’s ultimatum to Tesla workers regarding returning to the office. One can’t help but compare Musk’s hardline approach with return to the office to Apple’s soft approach.
Above Avalon membership is required to read this daily update. Members can read the update here.
Above Avalon Membership
Above Avalon members receive the full Above Avalon experience throughout the week.
The cornerstone of Above Avalon membership is access to Neil’s exclusive daily updates about Apple. Daily updates are 2,000 words and sent via email Monday through Thursday. Updates revolve around the following topics:
Apple business and strategy analysis.
Neil’s perspective and observations on current news and Apple competitors.
Neil’s Apple financial estimates.
Full coverage of Apple earnings, product events, and keynotes.
If it is of interest to Apple, it is something I pay attention to.
Member Privileges and Benefits
Receive Exclusive Daily Updates. The cornerstone of Above Avalon membership is access to Neil’s exclusive daily updates about Apple. Updates are sent via email and go over current news and developments impacting Apple, its competitors, and the industries Apple plays in (or will play in). Approximately 200 daily updates are published throughout the year. Sample daily updates can be viewed here, here, and here.
Receive Exclusive Reports. Members have access to Neil’s reports, which are in-depth examinations of Apple's business, product, and financial strategy.
Access Private Podcasts. Members have the option of attaching the podcast add-on to their membership in order to receive the daily updates and reports in audio form.
Access Neil’s Earnings Model. Members have access to Neil’s working Apple earnings model (an Excel file that also works in Numbers). The model is fully functional and adjustable and provides the ability to alter earnings drivers.
Email Priority. Receive priority when it comes to having email questions and inquiries answered. Neil personally answers all inquiries, including customer service matters related to your membership.
Archive Access. Read 1,200+ daily updates and reports that have been previously sent to members. The Above Avalon member archive is unmatched in the marketplace in terms of the sheer amount of Apple analysis found in one location. The daily updates archive can be viewed here while the reports archive is available here.
Member Forum Access. Join other Above Avalon members in an active forum containing in-depth discussion and debate. Neil moderates and participates in the forum. The forum is run through Slack and can be accessed here.
Virtual Meet-ups. Talk with Neil about Apple and other related items in virtual meet-ups held via Slack throughout the year.
Above Avalon Support. Play an active role in supporting Above Avalon as an independent source of Apple analysis. Above Avalon is fully sustained by its members.