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It Was Good Year for Apps: iPhone Users Spent Average of $40Despite news of declining app usage and retention, new data shows that U.S. iPhone users spent more on premium apps and in-app purchases (IAPs) per device in 2016 than they did in 2015.

In fact, those users spent an average of $40 per iPhone, versus $35 the year before.

The data comes from Sensor Tower Store Intelligence, which notes that “While mobile games still dominated consumer spending in 2016, big gains by other categories (such as Entertainment, which saw per-device spend double) helped grow overall revenue per iPhone considerably.”

Sensor Tower’s report examines the leading categories by per-device spending for 2016, including their year-over-year growth, along with average app installs by category.

Some highlights from the report:

  • More than 80 percent of U.S. App Store revenue in 2016 was generated by games, which was reflected on the device level by the overwhelming portion of the $40 total they comprised.
  • A real standout of the findings was the year-over-year growth of Entertainment category spending, which was up by 130 percent, from $1.00 in 2015 to $2.30 in 2016. (This category includes some of the U.S. App Store’s historically highest grossing apps, such as HBO NOW, Hulu, and Netflix).
  • Social Networking declined the most per-device out of the top five most downloaded categories. Downloads for certain categories, such as Social Networking, continue to coalesce around the most dominant apps (in this case Facebook, Messenger, Snapchat, etc.).

More information is available from Sensor Tower here.

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