Apple App Store revenue ticks up despite falling downloads

Apple’s App Store business showed modest resilience in early fiscal Q4, with revenue up 0.6% year over year to $3.4 billion despite a 4% decline in iPhone and iPad downloads. Higher monetization per download offset weaker volume, and July trends were slightly firmer globally, though downloads still fell. China remained a bright spot, with revenue up 8.7% even as downloads dropped 6.8%. Bank of America kept a Buy rating and a $380 price target, citing Apple’s strong capital returns, Services growth, and AI-at-the-edge optionality. The note suggests the market continues to view Apple’s Services segment as a key support for earnings stability and future monetization, even as app download growth softens.