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Apple says gaming slowdown and App Store changes weighed on services growth

The iPhone maker topped 1.5 billion paid subscriptions but cited mobile gaming weakness and court-ordered payment rule changes
WHY IT MOVED
Services is Apple's second-largest business and its highest-margin segment, so any deceleration matters to the valuation multiple investors assign the stock.
AT PUBLICATION
AAPL333.43▼ -1.41%
Measured when this story was written, not live.
AAPL Big Tech & AI Earnings & guidance InstantWhy Newsroom 1h ago

The numbers

TechCrunch reports that Apple attributed slower services growth to a mobile gaming slowdown and changes to the App Store's business model, including court-ordered payment rule changes in the U.S. The company said it has topped 1.5 billion paid subscriptions. Apple has not released a formal statement independently confirming these details.

Why it matters

The gaming weakness reflects a broader industry slowdown that has hit mobile game publishers and in-app purchase revenue across platforms. The App Store payment changes stem from the Epic Games litigation, which forced Apple to allow developers to link to outside payment methods, cutting into the commission revenue Apple collects on digital purchases.

How this compares

Apple shares have been sensitive to services growth in recent quarters. In July the stock fell after the company issued weak revenue guidance despite beating profit and revenue estimates, as investors focused on forward-looking concerns rather than the beat. Services revenue has been a key driver of Apple's margin expansion over the past several years, making any sign of deceleration closely watched by analysts.

What to watch

Investors will watch whether the gaming slowdown persists into the holiday quarter and whether the App Store payment changes lead to a sustained shift in how developers monetize apps. Apple has not disclosed the financial impact of the court-ordered changes, and the company has not said when or whether it expects mobile gaming spending to recover.

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HOW THIS STORY WAS MADE

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Artificially generated from public sources, explained in our own words, and published as fast as possible. Our team holds editorial responsibility. This is analysis, not investment advice.

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