Apple’s App Store revenue plunged by 5% year-on-year in September, according to Sensor Tower analytics. Games revenue was down by 14%.
Morgan Stanley, which carried out financial modeling based on the data, said that this was the biggest drop seen since it first started tracking, back in 2015.
The App Store saw declines in markets including the U.S., Canada and Japan, Morgan Stanley analyst Erik Woodring wrote in a report Monday. His analysis was based on data from Sensor Tower, a firm that tracks app downloads and sales.
Morgan Stanley said the main culprit for the drop was gaming revenue, which was down 14% in September, according to the data.
During its most recent earnings call, Apple indicated that year-on-year revenue comparisons were still skewed by the strong demand for at-home entertainment during the pandemic.
Also, the sanctions against Russia have seen energy prices rise steeply around the world. The resulting double-digit inflation has left people with less disposable income.
App Store revenue could soon see an additional drop, as app prices will rise tomorrow in Europe and other parts of the world. Both apps and in-app purchases will see a 20% jump in prices.
App Store revenue could well fall even further this month, as price rises come into effect tomorrow, in Europe and other parts of the world. This increases the cost of both app sales and in-app purchases by a full 20% increase in prices, as Apple protects its revenues against the strong dollar.
The bank says that while overall Services revenue will continue to grow, the rate of growth will continue to slow.