Pokemon Go could add $3B to Apple revenues, analyst says
Apple could potentially reap $3 billion in incremental revenue from Pok?mon Go over the next couple of years, an analyst argued in a Wednesday investor memo, helping to buoy the company's stock price.

In the memo, seen by AppleInsider, Needham's Laura Martin noted that an earlier casual gaming hit -- Candy Crush -- generated over $10 billion per year in its peak years, 2013 and 2014. Pok?mon Go, however, already has 10 times the number of players, and Apple gets to retain a 30 percent cut of any revenues generated from the iOS App Store, though the game is also available for Android.
The game is currently thought to be reaching 21 million people in the U.S., or about 6 percent of the country's population. Assuming global penetration peaks at 20 percent in the markets where Go is available -- and Apple pulls in 5 cents per person, per day -- the company could theoretically take in an extra $3 billion in revenue in the next 12 to 24 months.
That might boost the company's market cap by as much as $5.5 billion, or $1 per share, Martin added, also pointing out that Apple's short-term cash flow from Pokemon Go is expected to be higher than Nintendo's, which only owns 33 percent of the Pok?mon Company along with a 30 percent stake in the game's developer, Niantic.
Apple shares have risen slightly in Wednesday trading, sitting just over $100. For most of the past three months, shares have typically sold under that threshold, bottoming out near $90 in May.

In the memo, seen by AppleInsider, Needham's Laura Martin noted that an earlier casual gaming hit -- Candy Crush -- generated over $10 billion per year in its peak years, 2013 and 2014. Pok?mon Go, however, already has 10 times the number of players, and Apple gets to retain a 30 percent cut of any revenues generated from the iOS App Store, though the game is also available for Android.
The game is currently thought to be reaching 21 million people in the U.S., or about 6 percent of the country's population. Assuming global penetration peaks at 20 percent in the markets where Go is available -- and Apple pulls in 5 cents per person, per day -- the company could theoretically take in an extra $3 billion in revenue in the next 12 to 24 months.
That might boost the company's market cap by as much as $5.5 billion, or $1 per share, Martin added, also pointing out that Apple's short-term cash flow from Pokemon Go is expected to be higher than Nintendo's, which only owns 33 percent of the Pok?mon Company along with a 30 percent stake in the game's developer, Niantic.
Apple shares have risen slightly in Wednesday trading, sitting just over $100. For most of the past three months, shares have typically sold under that threshold, bottoming out near $90 in May.
Comments
http://www.statista.com/statistics/288974/king-annual-revenue/
Pokemon Go also doesn't have 10x the number of players, it only has about 30 million. Candy Crush has had over 300 million (10x more than Pokemon).
http://venturebeat.com/2016/07/19/sensor-tower-pokemon-go-has-already-passed-30m-downloads-and-35m-in-revenue/
Pokemon Go has been estimated at making $1.6m a day in the US. If it's $5m/day worldwide and sustains that, it would take 200 days to make $1b. Pokemon has been going for 20 years already so it's possible that it can sustain interest for a long time but if it makes $1b in a year, Apple will make $300m.
Multiple popular Nintendo games could bring in a few billion over the next couple of years though.
Apple makes billions and billions upon dollars, but if they sell 11.1 million iPads instead of 11.3 million iPads, because that's the figure that some analyst dug out of their behind, then AAPL will of course have to drop.
Sorry, but there are millions playing this game. You going to claim they are all dumb because the style of play is something you don't like? This game is brilliant, and I predicted its massive success (I said it would be the biggest mobile game in history) way back when it was announced based on one simple premise: take a game/concept people love to play (Pokemon) and convert the love of that game into exercise. My kids have walked almost 20km since this game came out (about 5km a day).