AppMagic: Non-gaming apps have beaten mobile games in IAP revenue since 2016
A new AppMagic report examining a decade of mobile app data reveals that non-gaming applications have dominated in-app purchase (IAP) revenue since 2016, marking a significant shift in the mobile ecosystem’s monetization landscape. While mobile games held the top position in 2016, they have since been surpassed by social and AI-powered platforms.
TikTok and AI chatbots, particularly ChatGPT, now lead overall IAP revenue generation. TikTok has held the position of top-grossing app annually since 2020, while ChatGPT became the most downloaded app globally in 2025, reflecting the explosive growth of artificial intelligence technologies.
Within gaming, however, traditional mobile titles remain highly profitable. Honor of Kings and Free Fire have led mobile gaming revenue charts throughout the 2016–2026 period, with Honor of Kings consistently dominating since its 2017 launch. That year alone, the title generated approximately $830 million in IAP revenue, establishing itself as a mobile gaming powerhouse.
The data underscores a broader industry transformation where monetization models have diversified beyond traditional gaming. While competitive mobile games remain highly profitable, the rise of social media platforms and generative AI applications has fundamentally altered the revenue hierarchy of the mobile app ecosystem.