Apple App Store revenue rises 12% in June as user spend shifts beyond games

Apple’s global App Store revenue climbed by 12% year-over-year in June, outpacing download growth and signaling a notable shift in how users spend within the platform.

According to fresh data from Bank of America, citing figures from Sensor Tower, global App Store revenue rose to $8.4 billion for Apple’s fiscal third quarter, an 11.5% increase from the same period last year. Downloads grew at a slower pace, up just over 4% to 8.6 billion, with revenue per download increasing nearly 7% to $0.98.

While mobile gaming remains the single biggest revenue category for the App Store, its share is shrinking. Games accounted for 45% of total App Store revenue in the quarter — down from more than 50% in previous years. This signals a steady shift in consumer spending toward other app categories.

Bank of America’s analysis highlights strong momentum in non-gaming segments. Categories like Photo & Video, Lifestyle, Books, Education, and Utilities each gained about 1 percentage point in revenue share, while Productivity apps saw the biggest leap, climbing by 2 percentage points — the highest growth among all categories.

Analysts believe this diversification is a positive sign for Apple and app developers alike. As users embrace more subscription models, premium features, and value-added services in non-gaming apps, developers are rethinking monetization strategies traditionally dominated by gaming.

“This broadening of revenue streams could push legacy game developers to diversify into non-game experiences or expand their in-app purchase offerings,” Bank of America wrote in its note, calling the trend a potential long-term tailwind for Apple’s app ecosystem.

The report also addressed ongoing concerns about the impact of regulatory challenges following the Epic Games lawsuit over Apple’s in-app payment rules. Despite legal pressure to loosen App Store restrictions, Bank of America said there is no sign of a material hit to revenue so far.

Investor sentiment remains broadly optimistic. Bank of America reiterated its Buy rating on Apple shares, with a price target of $235, citing confidence in the company’s capital returns, potential leadership in on-device AI, and new revenue opportunities from future product categories.

This upbeat view stands in contrast to JPMorgan’s slightly lower revised target of $230, though both banks remain positive about Apple’s longer-term growth story.