Apple Schedules an App Store Event

With services revenue growing as a percentage of total revenue, it’s not surprising to see Apple giving apps more attention.

| More on:

On Monday afternoon, Apple (NASDAQ: AAPL) sent out surprise invitations to an event. The event, which is scheduled to take place in New York City on Dec. 2, will honor the best apps from the year.

This marks a first for the company. Of course, it’s no surprise to see Apple holding an event to honor the best apps. After all, strong growth in Apple’s App Store has propelled its services segment higher in recent years, making the important segment second in size (measured by both revenue and gross profit) only to the tech giant’s iPhone business.

An app-centric Apple

“Join us for an Apple special event honoring our favorite apps and games of 2019,” read Apple’s invitations to press on Nov. 18. The invitations were titled “Loved by millions. Created by the best.”

Given that Apple typically shares its “Best of” apps from the App Store in a blog post sometime during the first few days of December, this Dec. 3 event is likely a continuation of the annual tradition — except with an actual event to go with it.

This comes just as the company updated its Worldwide Developers Conference (WWDC) app with a new name — Apple Developer — and announced the app would feature year-round news. “Starting today, the WWDC app is now the Apple Developer app and delivers in-depth information from Apple experts all year round,” Apple said in a post about the updated app. “Stay up to date with the latest developer news, informative videos, WWDC content, and more.”

With Apple’s services business growing rapidly and increasingly accounting for a larger share of the tech giant’s revenue and gross profit, it makes sense for the tech company to give the App Store more attention. The App Store, which saw all-time high quarterly revenue in fiscal Q4, was one of the main drivers of Apple’s 18% year-over-year growth in services revenue during the period. Further, subscriptions across the App Store are surging. Paid App Store subscriptions in fiscal Q4 amounted to 450 million, up from 330 million in the year-ago period.

Could Apple announce a new service of its own?

Apple has unsurprisingly been ramping up its own efforts in the App Store in a bid to better monetize its loyal customers. In 2019, Apple launched Apple News+, Apple TV+, and Apple Arcade — and CEO Tim Cook has said it’s working on other services. Further, the company is rumored to be readying a service that bundles together Apple Music, Apple News+, and Apple TV+.

The company could launch a new app of its own at its Dec. 3 event.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple and recommends the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has a disclosure policy.

More on Tech Stocks

cryptocurrency, crypto, blockchain
Tech Stocks

Everyone Is Talking About Chip Stocks: Are They a Good Long-Term Option?

Chip stocks have been all the rage, but what are long-term investors really in for by buying them on the…

Read more »

Wireless technology
Tech Stocks

3 Tech Stocks You Can Buy and Hold for the Next Decade

Are you looking for Canadian tech stocks that could be multi-baggers in the decade ahead. Here are three small-cap stocks…

Read more »

Businessman holding AI cloud
Tech Stocks

3 Top Artificial Intelligence Stocks to Buy in March

AI stocks are the future, but what about the companies already using it for their own advantage? Here are three…

Read more »

retirees and finances
Tech Stocks

Should You Wait Till 70 To Claim CPP Benefits?

You can earn the maximum CPP payout if you wait till 70 to claim the benefit. But is the wait…

Read more »

financial freedom sign
Tech Stocks

1 Tech Stock Has Created Millionaires and Will Continue to Make More

Are you interested in a tech stock that has created millionaires? Find out which stock that is!

Read more »

Business man on stock market financial trade indicator background.
Tech Stocks

This Growth Stock Is Down 26%: Buy, Sell, or Hold?

While many growth stocks took to the sky after the December 2023 earnings, this one growth stock fell 26%. Should…

Read more »

question marks written reminders tickets
Tech Stocks

BlackBerry Stock Is at a 20-Year Low: Is it a Buy?

BlackBerry has been through several ups and downs. But this time, the stock is at its 20-year low. Is this…

Read more »

Two seniors float in a pool.
Tech Stocks

Could Nuvei Stock Help You Become a Millionaire?

Nuvei stock is favourably priced today for growth focused investors to buy. Could the stock enhance your chances to build…

Read more »