Apple App Store Revenue Increased 14% Year-On-Year in September, According to BofA

According to a report from Bank of America, Apple’s App Store revenue saw a 14% increase year-over-year in September. The report highlights that this growth was driven by strong global demand, with SensorTower data indicating that the App Store revenue for the fourth quarter of fiscal year 2024 totaled $7.8 billion, reflecting a 13.6% year-over-year rise.

During the same timeframe, total app downloads for iPhone and iPad increased by 5.5%, reaching 8.9 billion. Notably, despite being the second-largest category of apps, revenue from Entertainment apps surged by 33% year-over-year in the fourth quarter, marking it as the third fastest-growing category during that period. This growth was mostly attributed to popular applications like YouTube and TikTok, which experienced revenue increases of 24% and 52% year-over-year, respectively.

Gaming apps, which continue to dominate the App Store’s revenue, saw a 6% year-over-year growth, totaling $3.9 billion. However, their share of total revenue has decreased to 50% from 54% a year earlier. The report also indicated that in China, a crucial market for Apple, App Store revenue rose by 6% year-over-year in September, with the entertainment segment achieving a notable 21.9% growth. Conversely, gaming revenue in China remained relatively stagnant, with only a 0.2% increase.

Bank of America analysts observed that the European Union’s Digital Markets Act had minimal impact on App Store downloads, suggesting that consumer behavior in that region has remained stable. The bank anticipates that Apple’s services revenue will continue to grow, projecting a 14% year-over-year increase for both the fourth quarter of fiscal year 2024 and the first quarter of fiscal year 2025, viewing the strength of the company’s services as a positive long-term trend.