Apple App Store Revenue Declines Amid Six-Month Slump
Apple Inc.'s () App Store revenue declined 1% year-over-year in August, marking the sixth consecutive month of deceleration and the first year-over-year decline since November 2022. The gaming segment saw a particularly sharp drop, with revenues falling approximately 10% compared to an 8% decline in July.
However, excluding the gaming segment, App Store revenues grew around 8% year-over-year in August. Productivity led growth at 40%, followed by Music at 18%, Photo & Video at 9%, Social Networking at 5%, and Entertainment at 0%.
The decline in App Store revenue has sparked concerns about the path to double-digit Services growth for Apple, but the company has managed to offset softer trends with faster-growing areas across Services. Evercore ISI maintained its Outperform rating and $365.00 price target on Apple stock despite these challenges.