Apple said changes to the App Store business model in some countries, along with weaker mobile gaming activity, affected App Store performance during the latest quarter. The update came from CFO Kevan Parekh during the company’s earnings call.
The comments suggest that two separate pressures weighed on one of Apple’s key services businesses: softer spending or engagement in mobile games, and adjustments to how the App Store operates in certain markets. While Apple did not frame the issue as a company-wide slowdown in services, it highlighted a weaker area inside the broader segment.
Apple reported services revenue of $30.7 billion, a 12% increase, showing that the overall division still grew despite the App Store headwinds. That indicates other parts of services helped support results even as the App Store faced pressure from gaming trends and business model changes.
The earnings call remarks also underline how important mobile gaming remains to App Store performance. When gaming demand softens, or when Apple changes how the store does business in some countries, the effect can show up in revenue even if the wider services business continues to expand.
