Apple says mobile gaming headwinds held App Store performance flat
Apple reported that the App Store’s performance remained flat in its latest quarter as mobile gaming faced persistent headwinds. During the company’s earnings call for the three months ending September, Chief Financial Officer Kevan Parekh indicated that App Store revenue showed “similar to the prior year” results, signaling minimal growth.
Parekh highlighted “headwinds in mobile gaming” as a contributing factor to the stalled growth and cautioned that these challenges are expected to persist into the December holiday quarter—a traditionally strong period for the App Store.
The flat performance also reflects broader regulatory challenges affecting Apple’s App Store business model. The company continues to contend with “changes to the App Store business model in certain countries,” and in the United States, Apple is operating under a court ruling that impacts “link-out transactions,” allowing developers to direct users to external payment systems. These regulatory pressures, first disclosed in July, have altered how Apple monetizes the platform in key markets.
The combination of sluggish mobile gaming demand and regulatory constraints suggests that Apple’s typically reliable App Store revenue stream faces significant headwinds heading into what is normally one of the strongest quarters for digital distribution and in-app spending.