This Game Developer Got a Big Boost from Apple
During Apple’s (NASDAQ:AAPL) third quarter results conference call, CFO Peter Oppenheimer noted the unprecedented success of Apple’s App Store. The “iTunes Stores generated record billings of $4.3 billion in the June quarter, culminating in our best months and best week ever for App Store billings at the very end of the quarter,” stated Oppenheimer via Yahoo Finance. Apparently, one of the major beneficiaries of the App Store’s success is the game developer Electronic Arts (NASDAQ:EA).
“Our quarter was notable for the high percentage of revenue attributable to digital games and services. To that end, Apple was EA’s biggest retail partner measured by sales, and that, is a first,” stated Electronic Arts President and COO Peter Robert Moore via Seeking Alpha.
Moore noted some of the big mobile game hits for Electronic Arts in the quarter, including The Simpsons: Tapped Out, The Sims FreePlay, and Real Racing 3. According to Moore, the Waterfront update for the Simpsons game made it the “number five grossing app on both iPhone and iPad in the U.S.”
Electronic Arts CFO and Executive Vice President Blake J. Jorgensen also noted his company’s spectacular overall mobile gaming growth in the earnings call with investors. “Smartphones and tablets continue to represent a majority portion of the revenue, accounting for $90 million of the $103 million total, growing 73 percent year-over-year,” stated Jorgensen via Seeking Alpha. “Given the significant global growth in the smartphone and tablet markets, we are very focused on this business,” he added.
Although Electronic Arts did not specify how much of the $90 million of smartphone and tablet revenue came from Apple users, it should be noted that the App Store performed better than EA’s own digital game download service, Origin. Apple’s App Store recently celebrated its fifth anniversary, and surpassed 50 billion app downloads.
Although the Google (NASDAQ:GOOG) Play app store is not far behind Apple’s record with 48 billion downloads, iOS developers continue to take the lion’s share of the app market’s profits. According to Oppenheimer, “app developers have made over $11 billion for their sales through the App Store, half of which was earned in the last four quarters.”
Here’s how Apple has traded so far today.
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