Apple is seeing cracks in App Store growth as revenue in the app storefront declined during the three-month period that ended October 30th on an annual basis.
A Morgan Stanley analyst named Wamsi Mohan is referencing data from app industry research firm Sensor Tower to note that App Store revenue for the three months ended October 30th declined 4% on an annual basis to $2.4 billion. Mohan's comments were reported by
and the analyst also pointed out that the number of downloads sourced from the App Store by iPhone and iPad users rose 2% over the same time period. collected less revenue from the App Store year-over-year while the number of installs increased, the average price of each app downloaded was lower than the year before. The data also shows, unsurprisingly, that the U.S. was responsible for a leading 33% of App Store revenue during the three-month period that ended October 30th.
Apple's shares declined $2.69 or 1.75% to $150.65 on the report as investors feared that App Store revenue might no longer deliver strong growth on a consistent basis. The three-month period that ended October 30th included a tough September for the App Store as revenue declined 5% that month on a year-over-year basis. The App Store's top line for September was hurt by a 14% drop in games revenue.
One might argue that with less concern about COVID, more people are going out instead of sitting home and playing games on their phones and tablets.Get the most important news, reviews and deals in mobile tech delivered straight to your inbox
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