As for the reasons behind the decline, Woodlin noted that due to inflation and other economic issues,appleCustomers are likely to spend less on soft commodities such as software. First, gaming revenue is said to have dropped 14%, and the overall 5% drop was the biggest drop since Morgan Stanley started tracking the data in 2015.
“We think recent App Store results clearly show that consumers around the world are placing less emphasis on App Store spending in the near term as discretionary income is reallocated to areas of pent-up demand,” Woodlin said. .
In Apple’s earnings report, App Store sales are not reported separately, but are included in the services business. Services brought in $19.6 billion in the June 2022 quarter, up from $17.4 billion a year earlier.