- iOS users out spent their android counterparts on the Thanksgiving weekend.
- The higher value per order of iOS users and the higher share of online traffic led to iOS users driving higher share of Thanksgiving weekend sales.
- Billions of dollars in holiday spending, combined with the high potential of iOS users, presents Apple Pay with a significant monetization opportunity, which can drive Apple’s revenue growth.
Thanksgiving and Black Friday weekend marks the beginning of the holiday shopping season in the United States. The shopping results for the weekend are out, with Thanksgiving Day online sales growing by 14% year on year and Black Friday online sales growth coming in at 9.5% year on year. The weekend sales held encouraging implications for Apple Pay, Apple’s new payments service launched October.
Mobile drives online traffic and sales on Thanksgiving weekend.
Mobile traffic accounted for a large part of the thanksgiving weekend traffic, at 52.1% and 49.6% of total traffic on Thanksgiving Day and Black Friday, respectively. The higher traffic also led to mobile sale growing faster than overall online sales.
|Online sales||Mobile Sales|
However, it wasn’t only about mobiles as the desktop average value per order was significantly higher than smartphone and Tablet average value per order.
|Average order value|
The weekend sales had encouraging news for Apple in the form of iOS users outspending their Android counterparts in terms of percentage of total sales, percentage of total traffic as well as average value per order. The three metrics for Android and iOS users are summarized in the table below.
|Average value per order ($)||121.86||98.07|
|Online traffic (of total online traffic)||34.20%||15%|
|Online sales (of total online sales)||21.90%||5.80%|
The implications of the above numbers are clear:
- Apple users have a higher monetization value as compared to Android users.
- The higher spending iOS users present a ready user base for Apple’s payment service, Apple Pay, to target.
Considering that the total festival season sees shoppers spend billions of dollars, in-store and online, the idea of Apple pay as a payment alternative in retail stores as well as online payments could easily see the service process billions of dollars in payments. The commissions on these payments could be huge and drive meaningful contributions to Apple’s revenue and earnings growth.