Apple’s news service reaches 100 million users, App Store sales expand

Apple Inc on Wednesday said its Apple News service has reached 100 million monthly active users versus 85 million a year prior, demonstrating growth in a key services business that is being closely watched by investors as iPhone sales decline.

The users come from the United States, United Kingdom, Canada and Australia, Apple said. Apple also offers a paid version of its news service called Apple News+ for $9.99 per month but did not disclose subscriber numbers.

Apple gave the figures in its annual early January update on its services businesses. Apple’s overall services segment revenue rose 16 per cent to $46.3 billion in its most recent fiscal year ended on Sept. 28, 2019, while its iPhone segment sales fell 14 per cent to $142.4 billion.

The company said that between Dec. 24, 2019, and Jan. 1, 2020, its customers spent $1.42 billion in its App Store, a 16 per cent increase over the previous year, and $386 million on Jan. 1 alone, a 20 per cent increase.

Apple keeps between 15 per cent and 30 per cent of the sales through its App Store, depending on whether users buy software as a one-time purchase or recurring subscription.

Apple launched several new services in 2019, including a streaming video service called Apple TV+, a video game service and a credit card.

REUTERS

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