iPhone owners in the United States spent an average of $40 on premium apps and in-app purchases on each of their devices in 2016, according to new data shared by analytics company Sensor Tower. That's up from an average of $35 in 2015.

Unsurprisingly, most iPhone users are spending their money on games. 80 percent of U.S. App Store revenue in 2016 was generated by games, and on average, iPhone users spent $27 on game-related content.

sensortowerspendingbycategory
Spending on apps in the entertainment category - such as Netflix and Hulu - was at $2.30 on average, compared to $1.00 in 2015, perhaps due to Netflix starting to offer in-app subscription options at the end of 2015. According to Sensor Tower, Netflix contributed over $58 million in gross revenue to the entertainment category in 2016, up from $7.9 million in 2015.

Average spending on music also rose slightly in 2016, from $3.40 to $3.60, and social networking went from $1.80 to $2.00. Spending on apps in the photo and video category jumped from $0.30 to $0.70 during 2016.

While spending on apps is up across the board, Sensor Tower saw a decline in the average number of apps installed on each iPhone - 33, down from 35 in 2015. Games continues to be the most popular app category, with an average of 10 games installed on each iPhone.

sensortowerappdownloadsaverage
According to Sensor Tower, its estimates are based on data pulled from 132 million active iPhones in the United States during the 2016 calendar year (January 1 to December 31). The numbers use estimates from Consumer Intelligence Research Partners and the company's own Store Intelligence platform.

All revenue estimates included in the report are gross amounts spent by consumers before deducting Apple's 30 percent revenue cut.

Top Rated Comments

Strutten Avatar
111 months ago
I must be a rare user. I never purchase applications and I do not have any on my iPhone. Plenty of free applications serve my needs. There are A lot of free applications that are just as good as some of the paid applications from my experience.
How could you possibly know that, since you never buy any?
Score: 5 Votes (Like | Disagree)
44267547 Avatar
111 months ago
I must be a rare user. I never purchase applications and I do not have any on my iPhone. Plenty of free applications serve my needs. There are A lot of free applications that are just as good as some of the paid applications from my experience.
Score: 5 Votes (Like | Disagree)
blue22 Avatar
111 months ago
I'm interpreting all this as iDevice users are EXTREMELY frugal with paying for app related content/services. $40 a year works out to $3.33 a month, which quite honestly is hardly "a lot of money" at all to be spending on an app's content and/or services. Makes you wonder how much some developers are struggling to make some ROI for their app-dev work.
Score: 2 Votes (Like | Disagree)
blcamp Avatar
111 months ago
I don't think I've spent $40 in the aggregate in the 6 1/2 years that I've had an iPhone.
Score: 2 Votes (Like | Disagree)
Cineplex Avatar
111 months ago
Seeing as iPhones are now devices parents shove in front of their kids faces so they don't "bother them"....I'm not surprised.
Score: 2 Votes (Like | Disagree)
GoodWheaties Avatar
111 months ago
It is incredible how much money some people spend in freemium games. I've never ever been tempted to spend any real money in a freemium game. Ever. I've only purchased a few apps like Lapse It, Pixelmator, and a couple non-freemium games. And sometimes I pay to remove ads.
Score: 2 Votes (Like | Disagree)

Popular Stories

iPhone 17 Pro Dark Blue and Orange

iPhone 17 Release Date, Pre-Orders, and What to Expect

Thursday August 28, 2025 4:08 am PDT by
An iPhone 17 announcement is a dead cert for September 2025 – Apple has already sent out invites for an "Awe dropping" event on Tuesday, September 9 at the Apple Park campus in Cupertino, California. The timing follows Apple's trend of introducing new iPhone models annually in the fall. At the event, Apple is expected to unveil its new-generation iPhone 17, an all-new ultra-thin iPhone 17...
iPhone 17 Pro Iridescent Feature 2

iPhone 17 Pro Clear Case Leak Reveals Three Key Changes

Sunday August 31, 2025 1:26 pm PDT by
Apple is expected to unveil the iPhone 17 series on Tuesday, September 9, and last-minute rumors about the devices continue to surface. The latest info comes from a leaker known as Majin Bu, who has shared alleged images of Apple's Clear Case for the iPhone 17 Pro and Pro Max, or at least replicas. Image Credit: @MajinBuOfficial The images show three alleged changes compared to Apple's iP...
iphone 16 pro ghost hand

iPhone 17 Pro: 5 Reasons Not to Upgrade This Year

Monday September 1, 2025 4:35 am PDT by
Apple will launch its new iPhone 17 series this month, and the iPhone 17 Pro models are expected to get a new design for the rear casing and the camera area. But more significant changes to the lineup are not expected until next year, when the iPhone 18 models arrive. If you're thinking of trading in your iPhone for this year's latest, consider the following features rumored to be coming to...
xiaomi apple ad india

Apple and Samsung Push Back Against Xiaomi's Bold India Ads

Friday August 29, 2025 4:54 am PDT by
Apple and Samsung have reportedly issued cease-and-desist notices to Xiaomi in India for an ad campaign that directly compares the rivals' devices to Xiaomi's products. The two companies have threatened the Chinese vendor with legal action, calling the ads "disparaging." Ads have appeared in local print media and on social media that take pot shots at the competitors' premium offerings. One...
iOS 18 on iPhone Arrow Down

Apple Preparing iOS 18.7 for iPhones as iOS 26 Release Date Nears

Sunday August 31, 2025 4:35 pm PDT by
Apple is preparing to release iOS 18.7 for compatible iPhone models, according to evidence of the update in the MacRumors visitor logs. We expect iOS 18.7 to be released in September, alongside iOS 26. The update will likely include fixes for security vulnerabilities, but little else. iOS 18.7 will be one of the final updates ever released for the iPhone XS, iPhone XS Max, and iPhone XR,...