Apple's App Store Revenue Fell Last Month, Morgan Stanley Says (cnbc.com) 8
Apple's App Store net revenue fell about 5% in September, according to Morgan Stanley, the steepest drop for the business since the bank started modeling the data in 2015. From a report: The App Store saw declines in markets including the U.S., Canada and Japan, Morgan Stanley analyst Erik Woodring wrote in a report Monday. His analysis was based on data from Sensor Tower, a firm that tracks app downloads and sales. Morgan Stanley said the main culprit for the drop was gaming revenue, which was down 14% in September, according to the data.
Apple customers may be spending less due to economic concerns, Woodring wrote. Across much of the globe, consumers are facing soaring inflation and recessionary risks. "We believe the recent App Store results make clear that the global consumer has somewhat de-emphasized App Store spending in the near-term as discretionary income is reallocated to areas of pent-up demand," Woodring wrote in the note. Morgan Stanley analysts also expect to see a drop in sales on Google Play, the primary Android app store. They estimate revenue there fell 9% in September.
Apple customers may be spending less due to economic concerns, Woodring wrote. Across much of the globe, consumers are facing soaring inflation and recessionary risks. "We believe the recent App Store results make clear that the global consumer has somewhat de-emphasized App Store spending in the near-term as discretionary income is reallocated to areas of pent-up demand," Woodring wrote in the note. Morgan Stanley analysts also expect to see a drop in sales on Google Play, the primary Android app store. They estimate revenue there fell 9% in September.
What about profit? (Score:2)
Who cares about revenue drops, what about the profits? Are they dropping at the same rate?
OH NO! CUE THE PANIC! (Score:2)
Because if the richest company in the world has even one of its revenue streams drop for a month, look out! The world is about to end!
I'm pretty sure Apple's gonna be just fine. I'm not even a fan these days, but this seems like a lackluster report on a lackluster problem during a time when nearly all revenue is seeing some form of shift due to increasing costs, decreasing demand, lack of public funds, or whatever economic reasons you want to throw into the pot. It seems like it's not really news to anybody
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The whole economy is tanking, by design. Gotta beat the middle-class and down back into their place, ya know.
I hardly think that's a reason to start nit-picking individual revenue streams for Apple so seriously that a five percent dip for one month is worth reporting. And like I said, I don't even care for Apple right now, this particular article just hit my wrong nerve.
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Customer service (Score:2)
Re: Customer service (Score:2)
That is why they increased app prices in Japan (Score:2)
Got to keep up the dollar-based revenue stream!