App Store game revenue fell 14% across all markets. App Store customers are concerned about the current economy.
App Store activity has declined in several markets, including three main countries: the US, Canada, and Japan. Erik Woodring, an analyst at Morgan Stanley, has studied this trend. According to him, the main reason for this drop is “game revenue fell 14% in September across all markets”.
Recent reports suggest that Apple’s App Store revenue took a big hit last quarter due to a drop in sales from the games business. Although the company continues to grow, it is reported that revenue from the app store has decreased to a certain extent.
Erik Woodring reported App Store net income fell 5%, the biggest drop since 2015. Woodring’s report is based on data from SensorTower. At the same time, the company’s new advertising policies introduced into the store may be one of the triggers. Of course, it would be more general to organize a survey among users to make a clear judgment.
“We believe the recent App Store results clearly show that users around the world are spending less on the App Store in the short term, as discretionary revenue is reallocated to affected regions. limited demand,” Woodring wrote. Apple considers App Store sales as part of its services business, not individually.
The company has between 15 and 30% in-app purchases and in-app purchases across its devices. Apple’s Services business generated $19.6 billion in revenue from $17.4 billion in the June quarter of 2022. It’s the biggest indicator of the company’s growth, even as it declines. decline in several areas.
Apple hasn’t released official revenue guidance for the September quarter. But Apple’s chief financial officer, Luca Maestri, said the company’s services division couldn’t grow more than 12% in the last quarter.
Morgan Stanley claims that Apple’s total services revenue grew 8% in the quarter ended September 30, 2022. Apple services include a wide range of products such as AppleCare, repairs, and Apple subscriptions. One, Apple Music, Apple TV+, Apple Card and more. This allows the company to survive even in crisis.
Users are facing hyperinflation and the risk of recession. This certainly has an effect on everyday consumption. “We believe the recent App Store results clearly show that users are spending less in the near-term,” Woodring said. Results will likely be similar on the Google Play store. The first estimate points to a 9% drop.”
Apple still loses between 15 and 30% of in-app purchases. For the Apple brand, the goal is clear: customers who own an iPhone or Mac will continue to spend after purchasing their device. Additionally, prices will increase in the coming weeks in Europe on the App Store. For the second quarter, Apple reported that revenue across its services grew 12% to $19.6 billion for the period.