Apple Says App Store Changes and Mobile Gaming Softness Affected Services Revenue

Softness in mobile gaming and Apple's changes to the App Store business model in some countries impacted the performance of the ‌App Store‌, Apple CFO Kevan Parekh said during today's earnings call. Apple's services revenue was $30.7 billion, a 12% increase over the $27.4 billion it earned in the year-ago quarter. Though the category saw growth, revenue came in under expectations, prompting analyst questions that led to Parekh's comments on the ‌App Store‌. We also had some factors that impacted the performance of the App Store. We did see some headwinds in mobile gaming, and then keep in mind, we also made some changes to the App Store business model in certain countries, and in the U.S., we do continue to operate under a court ruling impacting the link-out transactions. But we're pleased the Supreme Court will hear our appeal. There have been ‌App Store‌ fee updates in Japan and Brazil as of late, with Apple collecting no fees on link-outs in the U.S. and lower fees from alternative app marketplace apps in the EU. Despite the rule changes, the ‌App Store‌ still set a June quarter revenue record. Apple saw double-digit growth in cloud services, video, payment services, and advertising, with a record level of Apple Pay users. During the call, Apple also said it now has 1.5 billion paid subscriptions, with transacting and paid accounts hitting an all-time high. Parekh said it wasn't the ‌App Store‌ alone that impacted services revenue, and Apple also took a hit from foreign exchange. Last year, Apple also had the theatrical release of F1, and no equivalent release this year, making for a tougher compare. Services growth in the September quarter is expected to be similar to the June quarter when excluding an approximately 2.5 percentage point foreign exchange headwind. Popular StoriesApple Loses EU Fight Over App Store Gatekeeper LabelWednesday July 8, 2026 1:54 am PDT by Tim HardwickApple's challenge against the EU's designation of its App Stores and iOS platform as "gatekeepers" was dismissed by Europe's top court on Wednesday, reports Reuters. "The General Court dismisses Apple's actions regarding its designation as a gatekeeper in relation to the App Store and iOS," the Luxembourg-based tribunal said.Apple took its case to Luxembourg's General Court in 2024 after the...Google Fined $1 Billion by EU for Search Bias and App Store RestrictionsThursday July 23, 2026 5:39 am PDT by Tim HardwickGoogle was today fined €890 million ($1 billion) by the European Union for breaching antitrust rules with regard to its search and Google Play store services. The European Commission found that Google had broken the Digital Markets Act (DMA) by using its dominant position in the search market to favour its own services, like shopping and hotel deals, over those of rivals. The Commission ...Apple Responds to Lawsuit Over Fake Bitcoin Wallet Scam in App StoreApple is facing a new lawsuit from three customers who allegedly lost a combined $1.8 million after falling victim to a fake Bitcoin wallet app in the App Store, according to a complaint filed in California federal court on Friday. The complaint alleges that Apple violated California's Consumers Legal Remedies Act and other laws by failing to adequately review and monitor apps distributed...