Apple says gaming slowdown and App Store changes hurt services growth
Apple's services segment, which includes the App Store, AppleCare, music, video, and cloud services, reported $30.74 billion in revenue, falling short of Wall Street analysts' expectations. The company attributed the decline to several factors, including a slowdown in mobile gaming and App Store business model changes in certain countries. Despite the miss, Apple remains optimistic about the potential for growing its services business in the future, citing record revenue in developed markets and emerging markets.
- ▪Apple's services revenue fell short of Wall Street analysts' expectations, reporting $30.74 billion in the fiscal third quarter.
- ▪The company attributed the decline to a slowdown in mobile gaming and App Store business model changes in certain countries.
- ▪Apple has surpassed 1.5 billion paid subscriptions for its services business, with double-digit growth in emerging markets.
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| Original publisher | TechCrunch |
| Canonical URL | https://techcrunch.com/2026/07/30/apple-says-gaming-slowdown-and-app-store-changes-hurt-services-growth/ |
| Publication time | Thu, 30 Jul 2026 22:37:06 +0000 |
| Retrieval time | 2026-07-30T22:37:31.757Z |
| Last seen | 2026-07-30T22:37:31.757Z |
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Opening excerpt (first ~120 words) tap to expand
Apple says it has now topped 1.5 billion subscribers for its services business, up from 1 billion in January 2025. However, this segment of Apple’s business, which includes the Apple Store, AppleCare, music, video, and cloud services, was the only miss in what was otherwise a record-breaking quarter for the company’s hardware sales. In Apple’s fiscal third quarter, the company reported $30.74 billion in services revenue, falling short of the $31.22 billion Wall Street analysts had expected. Combined with a miss in China, Apple’s stock tumbled over 4% in after-hours trading. When asked to dive into what led to the decline in services revenue, Apple CFO Kevan Parekh pointed to several factors. Most notable, however, were the impacts on Apple’s cash cow, the App Store.
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