Eddy Cue Hints at Big 2023 for Apple, App Store Revenue Growth Slows (Daily Update)
Hello everyone. We kick things off with my thoughts on Eddy Cue, Apple’s SVP of Services, looking back at Apple’s Services business in 2022. Cue made an interesting comment about Apple in 2023. We then look at a key financial metric Apple disclosed regarding the App Store. With this data point in hand, we derive estimates for the amount of overall App Store revenue in 2022 and the amount of revenue Apple reports in its quarterly financial statements.
Let’s jump right in.
Eddy Cue Hints at Big 2023 for Apple
Going back to the mid-2010s, Apple has used the new year to publish a recap of how the App Store performed the prior year. As Apple released additional services over the years, the recap has grown into something of an Apple Services year in review.
This year's release contained plenty of statistics, although very few of them could be used for financial modeling purposes. Typically, the releases included a few select quotes from Eddy Cue and Phil Schiller.
Apple did something different this year. Cue, Apple's SVP of Services and part of Tim Cook's inner circle, penned the opening section of the press release.
“2022 was a groundbreaking year for entertainment. At some point over the past year, you probably discovered a new app, a new song, a new TV show or movie, or game. An experience that made you laugh, taught you something new, or helped you see the world in a new way — and moved you to share it with others.
At Apple, we have the privilege of partnering with creators of all kinds, while building products and services that enable even more creativity. Our mission has always been to enrich people’s lives and to leave the world better than we found it, and we know that takes more than technical skill. It requires leading with our values in everything we do. We believe that our products and services should be made for everyone. We believe that privacy is a fundamental human right, and that our highest obligation to our customers is security. We believe that a culture where everybody belongs can drive innovation, and that we must stand up for the change we want to see in the world.”
Cue made the case that Apple Services aren’t just revenue-generating side hustles that Apple is doing to please Wall Street analysts.
An Above Avalon membership is required to continue reading this update. Members can read the full update here. An audio version of this update is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here.
(Members: Daily Updates are always accessible by logging into Slack. If you haven’t logged into Slack before, fill out this form to receive an invite.)
Above Avalon Membership
Payment is processed and secured by Stripe. Apple Pay and other mobile payment options are accepted. Special Inside Orchard bundle pricing is available for Above Avalon members.
More information about Above Avalon membership, including the full list of benefits and privileges, is available here.