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Apple Services Growth Slows as App Store Rules and Gaming Decline Hit Revenue
Apple reported Services revenue of $30.7 billion for its third quarter, marking the first sequential decline since 2022 and the weakest quarterly growth rate since 2023. The company said the slowdown is linked to regulatory changes in the United States, the European Union, Japan and Brazil that have forced the App Store to allow alternative payment methods, as well as a softer mobile‑gaming market that historically drives a large share of App Store transactions. Apple now has more than 1.5 billion paid subscriptions across its ecosystem, up from over 1 billion the previous year.
CEO Tim Cook acknowledged the impact of these factors during the earnings call, noting that the combined effect of the new rules and reduced gaming spend is beginning to show in the Services segment. CFO Kevan Parekh added that the growth slowdown is also compounded by a difficult year‑over‑year comparison.
Separately, Apple’s shares fell nearly 10 % after Cook warned of a global memory‑chip shortage that is raising component costs and could constrain supply of iPhones, iPads and Macs in the upcoming September quarter. The company expects memory‑chip prices to continue rising and highlighted that only three suppliers dominate the DRAM market, limiting sourcing flexibility. Analysts noted that the stock drop reflects both the memory‑chip issue and a revised sales‑growth outlook of 9‑11 % versus Wall Street’s expectation of more than 12 %.
Entities
App Store · Apple Inc. · Apple Services · Kevan Parekh · Kevin (Apple CFO) · Mobile gaming · Tim Cook · iPhone
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] Apple’s stock fell nearly 10 % after CEO Tim Cook warned of a global memory‑chip shortage. hardware.slashdot.org · thesheffieldpress.com
- [● 3 SOURCES] Weaker mobile‑gaming spending contributed to slower Services growth. www.digitalnewsreport.com · www.mobilemarketingreads.com · www.appliste.cz
- [● 2 SOURCES] Apple has more than 1.5 billion paid subscriptions across its services. www.mobilemarketingreads.com · www.digitalnewsreport.com
- [● 2 SOURCES] Apple Services growth experienced its first sequential decline since 2022. www.digitalnewsreport.com · www.pymnts.com
- [● 3 SOURCES] Apple Services revenue was $30.7 billion in the third quarter. www.digitalnewsreport.com · www.mobilemarketingreads.com · www.pymnts.com
- [● 2 SOURCES] Apple expects memory‑chip prices to rise further, increasing costs for its products. www.clubic.com · hardware.slashdot.org
- [● 3 SOURCES] Regulatory changes in the US, EU, Japan and Brazil have forced App Store rule updates allowing alternative payment options. www.mobilemarketingreads.com · www.pymnts.com · www.appliste.cz
- [● 2 SOURCES] Apple warned of supply constraints for iPhone, iPad and Mac in the September quarter. www.archyworldys.com · www.clubic.com