Apple says gaming slowdown and App Store changes hurt services growth
Apple reported a services revenue of $30.74 billion, missing analyst expectations despite reaching 1.5 billion subscribers. The company attributed the shortfall to a slowdown in mobile gaming, regulatory changes affecting App Store commissions, and unfavorable foreign exchange rates.
Apple says it has now topped 1.5 billion subscribers for its services business, up from 1 billion in January 2025. However, this segment of Apple’s business, which includes the Apple Store, AppleCare, music, video, and cloud services, was the only miss in what was otherwise a record-breaking quarter for the company’s hardware sales.
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