Analyst Erik Woodring wrote in a note: “Compared to August, net revenue growth in the top 10 App Store markets, with the exception of China, Taiwan, and South Korea (which accounted for the largest share of the App Store), slowed. 87% of total revenue).”
The analyst added that net revenue in the Chinese market was “basically stable,” with revenue down 9% year-on-year and up 1 percentage point from August. Gaming was the main reason for the year-over-year decline, with the segment down 18% year-over-year.
Year-on-year growth in Japan and the United States was -20% and 5%, respectively, both lower than in August.
Taken together, Woodring estimates that the App Store’s total net revenue for the fiscal fourth quarter was $6.4 billion, down 2.1% year over year.
And supposeappleThe other services segment remained unchanged, with the analyst estimating that revenue for the entire services business would hit $19.71 billion in the next quarter, up 7.9% from a year earlier and below Wall Street expectations of $20.25 billion. Apple will report fourth-quarter results on October 27.
Also, while Apple’s fiscal first-quarter results may have improved due to base utility, an extra week of sales, and higher prices due to currency fluctuations, Woodring noted that consumer spending is currently slowing significantly, and even Apple is not immune.
“We believe recent App Store performance suggests 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,” Woodring wrote.
“So while Apple’s (year-over-year) growth rate improved in the fiscal first quarter (due to the extra sales week), the performance of the App Store will likely remain a point of contention for investors.”