Apple’s App Store posted a 12% revenue increase in June compared to last year, even as users pulled back on gaming. The data highlights a shift in user behavior, with rising downloads and spending in non-gaming categories like productivity and education.
While downloads rose 4% year over year, the sharper rise in revenue suggests users are spending more per app, particularly outside games. Gaming remains the largest App Store category, but its share fell to 45% of total revenue, down from over 50% in previous years.
Shift Toward Productivity and Utility Apps
Spending in categories such as Photo & Video, Lifestyle, Books, Education, and Utilities each gained 1% of total revenue share. Productivity apps saw the largest jump, rising 2%, according to Bank of America. This trend reflects a growing interest in tools that support personal and professional tasks.
As developers adapt to changing user preferences, the diversification away from games could strengthen the App Store’s long-term revenue base. Bank of America noted that this shift may encourage legacy game developers to expand in-app purchases or branch into new categories.
Apple Maintains Revenue Momentum Despite Regulatory Pressure
Citing SensorTower data, Bank of America reported that App Store revenue in Apple’s fiscal third quarter reached $8.4 billion, a rise of 11.5% year over year. Downloads increased to 8.6 billion, and revenue per download grew 6.9% to $0.98.
Despite ongoing scrutiny of Apple’s App Store practices, including the Epic Games ruling. Bank of America said there is no evidence of a negative revenue impact. The firm maintained its Buy rating on Apple stock and set a $235 price target, pointing to strong capital returns, potential gains in on-device AI, and growth from future product lines.
JPMorgan also weighed in last week, lowering Apple’s price target from $240 to $230 while keeping its “Overweight” rating. The firm signaled continued confidence in Apple’s broader strategy.