App Store Experiences Steepest Drop in Monthly Revenue in September
App Store Experiences Steepest Drop in Monthly Revenue in September

App Store Experiences Steepest Drop in Monthly Revenue in September

4 october, 20221 minute to read
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App Store's net revenue fell about 5% in September, marking the steepest drop for the business since Morgan Stanley started modeling the data in 2015.

The bank's analysis is based on data from Sensor Tower, a firm that tracks app downloads and sales. According to Morgan Stanley's analysts App Store saw declines in markets including the U.S., Canada and Japan.

The main culprit for the drop was gaming revenue, which was down 14% in September, according to the data collected by the bank.

We believe the recent App Store results make clear that the global consumer has somewhat de-emphasized App Store spending in the near-term as discretionary income is reallocated to areas of pent-up demand,

Morgan Stanley analyst Erik Woodring wrote in the note.

The analysts also expect to see a drop in sales on Google Play, the primary Android app store. They estimate revenue there fell 9% in September.

Apple officially does not report App Store sales but includes it as part of the services business, which also encompasses warranties and subscriptions such as Apple One. The company takes between 15% and 30% of app purchases and in-app purchases made on iPhones and other Apple devices.  

4 october, 2022
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