Apple(US:AAPL) Benzinga·2025-10-03 15:17Core Insights - Apple's App Store revenue increased by 10% year-over-year to $8.7 billion in the September quarter, with downloads rising 2.5% to 9 billion [1][4] - The revenue mix is shifting away from gaming, which now accounts for 45% of App Store revenue, down from over 50%, while categories like Productivity and Photo & Video are experiencing growth [6][7] - Strong monetization is evident, with dollars per download increasing by 7.3% year-over-year to 97 cents, and September revenue growth of 7% outpacing download growth of 3% [5][6] Revenue and Growth Metrics - App Store revenue for the fiscal fourth quarter of 2025 reached $8.7 billion, reflecting robust growth [4] - Total downloads across iPhone and iPad grew to 9 billion, marking a 2.5% increase year-over-year [4] - Revenue from the App Store for September alone rose by 7% year-over-year [5] Market Trends and Diversification - The shift in revenue mix indicates a healthier long-term trend for Apple's Services revenue, with significant growth in non-gaming categories [6][7] - Productivity apps gained approximately 300 basis points year-over-year, indicating strong performance in this segment [6] - The rise of AI-powered apps is contributing to the diversification of the App Store, with search-oriented AI apps capturing market share from Google's search app [8] Competitive Landscape - ChatGPT has seen substantial growth, increasing its App Store revenue from about $10 million in January 2024 to approximately $215 million in September 2025 [9] - Google's app share declined from 85% in January to 73% in September, highlighting the competitive pressure from emerging AI applications [8] Analyst Insights - BofA Securities analyst Wamsi Mohan maintains a Buy rating on Apple with a price target of $270, emphasizing the company's strong capital returns and potential leadership in AI [2][5] - Mohan projects fiscal 2025 sales of $416.04 billion and EPS of $7.39, indicating confidence in Apple's growth trajectory [9]