App Store Revenues Hit the Bottom Last Month

Well, we know that Apple is all about apps, services, and then devices to distribute them through. That makes the news about the biggest drop in the history App Store has ever experienced. This September, sales on App Store have fallen by 5%, which is unprecedented since the first recorded stats on the store. But there are rationales for it.

While in September 2021 Apple made about $7.2 billion on App Store, this year the revenue is just $6.9 billion. Though it’s “only” 5%, and it’s seriously less than 9% that Google App Store has lost in the same period, it’s still a serious decline. This undermines the idea that Apple keeps earning on their customers after they have bought the device(s) they need by providing services.

There are several declines within the big one, and the first of them is gaming revenue that is declining in the leading markets like the U.S., Japan, or Canada. Probably these users had to cut their expenses for purely economical reasons, and gaming appears among the first to save on. On the other hand, markets like China and South Korea appeared to be either flat or growing, though this wasn’t enough to recompense for the global decline. It’s not as serious, though, for performance apps and services:

According to Morgan Stanley, the drop in the App Store revenue has explanations. It’s logical: as users have less money to spend and less certainty, they will be able to in the nearest futures, unnecessary expenses are cut by up to 14%. This trend can be reversed if users start replacing offline services with more affordable online ones: for example, they may ditch gyms by buying some basic equipment and subscribing to Apple Fitness+. This is yet to be seen, though.

Have you cut your budget when it comes to games and apps? Did you spend a lot on paid apps or games or in-app purchases before, and if so, how much less do you spend now? Or maybe you do more now? Share your case with us in the comments if you please!