Apple Inc. (AAPL) App Store Raked In $1.1 Billion Over The Holidays, Setting New Record

Apple on Wednesday revealed yet another record breaking holiday season for its App Store. Over $1.1 billion was spent by customers on apps and in-app purchases during the two weeks ended Jan. 3, according to the company.

It's welcome news for Cupertino, which reportedly told suppliers it plans to cut iPhone 6S production by 30 percent over the coming weeks due to a slowdown in demand.

New Year’s Day marked the largest day in revenue for the App Store, with customers spending over $144 million, which broke a previous single-day record set on Christmas Day. Customers spent over $20 billion in App Store purchases alone in 2015. Since Apple keeps 30 cents for every dollar spent in its virtual storefront, that netted it about $6 billion in revenue for the year.

To date, the App Store has brought in nearly $40 billion in revenue for developers since its launch in 2008, with over one-third of that total generated in 2015 alone, according to the company.

“We're grateful to all the developers who have created the most innovative and exciting apps in the world for our customers,” Philip Schiller, Apple’s senior vice president of worldwide marketing, said in a statement. “We can't wait for what's to come in 2016.”

Games and subscriptions dominated Apple’s top grossing titles chart. “Clash of Clans,” “Monster Strike,” Netflix, Hulu and Match were among the leaders. Apple’s app portfolio also expanded in 2015 with the launch of its Apple Watch in April and its revamped Apple TV in October.

The $6 billion in revenue may seem like a drop in the bucket compared to the $155 billion Apple made on the iPhone in 2015. But its service revenue is expected to become a more important component of its growth strategy as Wall Street’s fears rise over a potential iPhone shipment shortfall by nearly 6 percent in Apple’s 2016 fiscal year, ending September, according to Morgan Stanley analyst Katy Huberty.

Though Apple’s App Store has been far outpaced by the Android Google Play Store, Apple apps accounted for over 80 percent higher revenue than Google Play in the third quarter of 2015, according to App Annie data.