Apple App Store grew by 12 per cent in June and the non-play business grew into a new engine.
According to Investing.com, a recent study by the Bank of the United States indicated that Apple Global has achieved a year-on-year increase of nearly 12 per cent in third-quarter harvests, but that the share of game income has declined from more than 50 per cent to 45 per cent over the same period. This is largely due to the fact that the income structure, which has traditionally been dominated by games, is undergoing a significant transformation, with non-playing applications showing increasing performance.
According to the market research institute Sensor Tower, in the third quarter of Apple 2025, App Store ‘ s total collection amounted to $8.4 billion, an increase of 11.5 per cent over the same period last year. The growth in quarterly downloads was relatively moderate, increasing by 4.3 per cent to 8.6 billion over the same period. On average, the income generated by each download increased by 6.9 per cent over the same period to $0.98. The 12 per cent increase in revenue in June, which is significantly higher than the 3 per cent increase in downloads in the month, indicates that the revenue structure is optimizing in a more positive direction. While the category of games remains the largest source of income for App Store, its share in total collections has dropped to 45 per cent in the current season. This is a significant decline from the share that generally exceeded 50 per cent in previous years.
The Bank noted, in particular, that the share of income in several non-playing applications had risen significantly: the share of income in the application of photo and video, life, books, education and practical tools had risen by about 100 basis points (1 percentage point). The most significant increase was in the efficiency tool category, where the share jumped 200 basis points (2 percentage points). The Bank of America believes that the diversification of App Store ‘ s sources of income is far-reaching. A signal will be sent to traditional game developers to consider diversifying into non-play areas or expanding existing in-house purchase options. Regardless of the path chosen by the developers, “we believe that in the coming years, either of these two situations can be a long-term good factor in the revenues of Apple Applications,” the Bank stressed. Although the recent Epic Gomes v. Apple decision allowed developers to direct users to the use of external payment methods raised market concerns, the Bank noted that the data to date “does not show any adverse impact on App Store’s income”.
Based on the strong performance of App Store and the overall outlook for apples, the Bank reaffirmed its “buy-in” rating for apples and maintained the target share price of $235. Prominent reasons include a strong capital return capacity, the belief that apples will eventually become winners in the “marginal artificial intelligence” field, and the potential growth opportunities offered by new products/new markets.
