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

Apple said App Store results were hurt by softer mobile gaming demand, business model changes in some countries, and U.S. court limits on link-out transactions.

Foreign exchange headwinds and a tough year-over-year comparison also pressured growth, even as services revenue rose 12% to $30.7 billion and hit a June-quarter record.

Apple said it now has 1.5 billion paid subscriptions, with transacting and paid accounts both reaching record highs.

The update underscores how regulation, platform policy changes, and gaming trends are shaping one of Apple’s key earnings drivers.