Advertisement
Tech NewsTechnology

App Store net revenue fell 5 percent in September, according to Morgan Stanley

Morgan Stanley analyst Erik Woodring revealed that the App Store has seen declines in some of its markets, including the US, Canada and Japan.

Morgan Stanley explained that the main culprit for the decline, according to the data, was game revenue, which fell 14 percent in September. Woodring underlined that Apple customers may be spending less due to economic concerns. Erik Woodring noted that net revenue growth for the top 10 markets for the App Store has slowed, except in regions such as China, Taiwan, and South Korea, which are growing or holding steady. These top 10 markets account for almost 87 percent of the App Store’s revenue.

Luca Maestri, Apple’s CFO, said in July that the company expects less than 12 percent growth in services in the September quarter due to the macroeconomic environment and the strong dollar. According to analyst estimates, Apple recorded $19.71 billion in services revenue in the quarter ended September. Even if that means 7.9 percent annual growth, services revenue fell short of Wall Street’s expectation of $20.25 billion.

Google Play Store’s application revenues are also expected to decrease

Sensor Tower also noted that the Google Play Store experienced an 8 percent year-on-year revenue drop in gaming spending . The company published content earlier this week that pointed to its global app revenue falling 5 percent year-on-year. Morgan Stanley analysts also think that there will be a decrease in sales on the Google Play Store. Analysts estimate revenue fell 9 percent in September.

Advertisement
Advertisement

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button