Apple May Generate $3 Billion in Revenue from Pokémon Go

MAIN Pokemon Go

As Pokémon Go gamers are going crazy buying “PokéCoins” from the App Store, Apple is expected to earn well over $3 billion from it in the next couple of years, according to brokerage Needham & Co’s Laura Martin (via Reuters). While the game is free to download, PokéCoins allow players to buy additional features. A pack of 100 PokéCoins costs $0.99 in the App Store, but the price can go up as much as $99.99 for a pack of 14,500 PokéCoins.

“Today, Pokemon GO is available in 35 countries, including most of Europe and Canada. Pokémon Go launches in Japan, the original home of Pokémon, this week. Pokémon reaches 127mm people in Japan, plus 320mm in the US plus 430mm in Europe and Canada (our estimate). In the US, penetrations after 10 days are 21mm out of a total US population of 320mm, or 6%. Assuming 20% penetration at maturity with revenue to APPL of $0.05/person/day suggests extra revenue to APPL from Pokémon Go of $3B over the next 12-24 months, depending on consumer adoption timing. At a 1.8x revenue multiple, this translates into market cap upside potential of $5.5B, or $1.00/share of added value”.

Previously, Candy Crush has generated more than $10 billion in revenue for Apple in both 2013 and 2014, but Pokémon Go has over 10 times the users. Martin estimates that Apple will retain 30% of Pokémon Go’s revenue spent on iOS devices, suggesting upside to earnings as well as valuable options on future hits. The game had 21 million active users in the United States alone as of July 18, less than two weeks after going live.

According to app analytics firm Sensor Tower, users in the United States are spending far more time playing the game than they are using Facebook FB.O or WhatsApp. 

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  • Tim

    These companies should negotiate better rates with Apple.

  • Steve $$$ Jobs

    That doesn’t happen. With all apps in the App Store Apple takes 30% of their revenue. It’s been like that since day 1.

  • Tim

    I realize this. They should apply pressure tactics since the royalty is ridiculous.

  • I agree. Apple has never budged on products and such, no sales or anything for the most part. Apple is a “is what it is” kinda place where you take it or leave it.

    Even at 30 percent, developers may not like it, but won’t turn their backs to it either. The amount of influence Apple has and their app store, devs have a lot to gain.

  • Nuser

    Then they should not post it in the App Store.

  • taskermatic

    Even with the royalty, not posting in the App Store would lose Nintendo billions of dollars. Apple customers buy more coins.