Apple Attributes Services Revenue Miss to Gaming Slowdown and App Store Changes
In its fiscal third quarter, Apple reported $30.74 billion in services revenue, below the expected $31.22 billion from analysts. The company attributed this shortfall primarily to a slowdown in mobile gaming and changes to the App Store's business model, including court-mandated payment flexibility for developers outside of Apple’s platform. These factors impacted the performance of its key revenue driver—the App Store—although it still set a June quarter record when combined with other services like Apple Ads. Apple CFO Kevan Parekh noted that foreign exchange rates and comparisons to prior quarters, which benefited from successful events such as
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Topics: App Store performance gaming slowdown regulatory changes services revenue