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Apple says gaming slowdown and App Store changes hurt services growth
Apple reported a services revenue of $30.74 billion, missing analyst expectations of $31.22 billion, due to a slowdown in mobile gaming and App Store changes. Despite surpassing 1.5 billion subscribers, the company faced challenges from foreign exchange rates and certain legal restrictions. However, Apple remains optimistic about future growth in services across various markets.
Key points
- Apple's services revenue for Q3 was $30.74 billion, missing the expected $31.22 billion.
- Growth in services subscribers reached 1.5 billion, up from 1 billion in January 2025.
- A slowdown in mobile gaming negatively impacted App Store revenue.
- Legal changes required Apple to allow outside payment processing, affecting App Store commissions.
- Foreign exchange rates and lower revenue from previous quarters affected overall services revenue.
- Apple Ads and other services segments reported record revenues.
Why it matters
- The situation reflects ongoing challenges in the gaming and app ecosystem, relevant as services diversify.
- Legal rulings affecting app payment processing could impact the broader tech industry's revenue models.
- Apple's innovations in payment and subscription models align with 2025 trends focusing on personalized consumer experiences and digital payment systems.
While Apple faced setbacks in its services growth due to gaming and legal challenges, the company remains committed to expanding its services revenue, indicating potential for future growth despite current obstacles.