Apple's Services Revenue Misses Targets Amid Slower Game Growth and App Store Policy Changes
Apple reported $30.74 billion in revenue from its services division for the third fiscal quarter, falling short of Wall Street's $31.22 billion expectation. Slower mobile gaming growth and evolving App Store regulations were cited as key factors.
Apple's services division revenue for the third fiscal quarter did not meet analyst expectations, the company announced. The segment generated $30.74 billion, falling short of the $31.22 billion projected by Wall Street analysts.
During the earnings call, Chief Financial Officer Luca Maestri highlighted several factors contributing to the slower growth in services. Among the most significant was the impact of regulatory changes affecting the App Store, particularly in the United States and other jurisdictions.
Maestri stated that a slowdown in mobile gaming market growth also affected the App Store's performance this quarter. Additionally, prior periods had benefited from one-time revenue boosts, such as those from the F1 movie, which did not recur.
The policy changes have allowed developers to implement third-party in-app purchase options outside the App Store, a shift that has impacted revenue. Apple is awaiting a Supreme Court ruling for further clarity on the matter.