Apple’s App Store powers to record holiday sales, generates job upswing

Apple said Wednesday the recent holiday season was a record-breaker for App Store purchases and customer traffic.

Customers spent more than $1.1 billion on apps and in-app purchases at the Apple App Store over the two weeks that ended on Jan. 3, the Cupertino company said.

Jan. 1, 2016 marked the biggest day in App Store history, with customers spending over $144 million. The prior single-day record was set on Christmas Day.

“The App Store had a holiday season for the record books,” said Philip Schiller, Apple’s senior vice president of Worldwide Marketing.

Customers spent more than $20 billion in the App Store during 2015, Schiller said.

Despite the boom for the App Store, shares of Apple tumbled on Wednesday amid worries about whether Apple will be able to maintain the torrid pace that it has established for sales of the company’s iPhone 6.

Reports have surfaced that some Asian parts suppliers are expecting Apple to trim production orders for its signature smart phone this winter.

Apple’s shares fell nearly 2 percent and finished at $100.70. The last time Apple’s stock was below $100 was in October 2014. The company’s shares did rise in after-hours trading.

The App Store also has become a major job generator in the United States, according to a study released on Wednesday by Michael Mandel, an economist with the Progressive Policy Institute, a left-leaning think tank.

“Our latest study shows 1.66 million App Economy jobs in the United States, up from roughly 750,000 in 2013,” Mandel said.

About 376,000 of those jobs, or 23 percent, are located in California.

“Apple’s unveiling of the App Store in July 2008 ignited a global App Economy boom,” Mandel wrote in his study. “A flood of developers around the world are writing and maintaining mobile applications” available through the App Store.


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