Apple Services Revenue Trajectory Signals Softness With Weaker App Store Downloads: Analyst

Core Insights - Apple's App Store revenue and downloads showed growth in August, but at a slower pace than historical trends, indicating a potential deceleration in the Services segment [1][4] - Year-over-year revenue growth for the App Store eased to 11.2% in August, down from 12.8% in July, while month-over-month growth was only 0.6%, below the average of 1.9% for this period [2][3] - Downloads increased by 2.2% year-over-year in August, a slight decline from 2.5% in July, and were flat month-over-month, contrasting with a 7.1% increase in July [3][4] Revenue and Growth Trends - The current quarter-to-date data suggests a growth rate closer to 12% year-over-year, which is slightly below Apple management's guidance of approximately 13% for fiscal Q4 2025 [3] - The August figures indicate a modest shortfall against expectations, reinforcing a softer trajectory for Apple's Services segment in the upcoming September quarter [4] Market Reaction - At the time of publication, Apple shares were up 1.25%, trading at $229.74 [4]