Apple Inc.’s App Store generated more than US$54 billion in revenue last year, according to the mobile app intelligence firm Sensor Tower.

The figure represents a 16-per-cent increase in App Store revenue from 2018 and highlights growth of more than 250 per cent in the past five years.

Apple’s business model is increasingly shifting to focus on services revenue tied to the more than 1.4 billion iPhones, Macs, iPads, Apple TVs and Apple Watches that are currently in use around the world.

To emphasize that point, Apple recently disclosed App Store customers spent more than US$1.4 billion between Christmas Eve and New Year’s Eve, while New Year’s Day spending reached a new single-day record of US$386 million.

Examples of services businesses include subscription offerings such as Apple Music, Apple Arcade and Apple TV Plus.

Growth in services revenue and optimism surrounding iPhone sales during the holidays have helped fuel Apple’s stock price.  The company’s shares have doubled in the past year, boosting Apple’s market valuation to nearly US$1.4 trillion.

Apple is set to report its latest quarterly results on Jan. 28.

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