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

Sensor Tower data showed that Apple’s AAPL App Store revenue and downloads grew in August, but slower than historical trends.

Year-over-year revenue growth eased to 11.2% and downloads rose 2.2%, signaling a softer trajectory for Apple’s Services segment.

JP Morgan analyst Samik Chatterjee maintained an Overweight rating on Apple.

Chatterjee said Apple’s App Store revenue showed softer-than-usual momentum in August, indicating a modest deceleration in growth relative to historical seasonal trends.

Also Read: Apple’s iPhone 17 Impresses On Design, But Analysts Say AI Still Lags

According to Sensor Tower data cited by Chatterjee, App Store revenue rose just 0.6% month-over-month in August, below the historical July-to-August average of +1.9%.

On a year-over-year basis, revenue growth slowed to +11.2% in August, compared with +12.8% in July.

The analyst noted that this trend sits slightly under Apple management’s guidance for fiscal fourth-quarter 2025 Services growth of about +13% Y/Y, with current quarter-to-date data implying closer to ~12% Y/Y growth.

App Store downloads also trailed seasonal norms, Chatterjee noted. Downloads were flat month-over-month in August, versus a +7.1% increase in July and an average historical sequential change of +0.8% for that period.

Year-over-year, downloads increased by +2.2% in August, compared with +2.5% in July.

Chatterjee highlighted that while growth remains positive, the August figures point to a modest shortfall versus expectations, reinforcing a slightly softer trajectory for Apple’s Services segment in the September quarter.

AAPL Price Action: Apple shares were up 1.25% at $229.74 at the time of publication Thursday. 

Read Next:

• Qualcomm And Google Cloud Forge AI Alliance To Transform Cars Into Smart Agents

Photo via Shutterstock