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15 Dec 2022
App Stores Experience Drop in Revenue
Image by Enrique Dans
A report published by Sensor Tower this week has shown that the App Store made significantly less revenue than it did over the last seven years, with a major drop in both US and international markets contributing to the downturn.
As Apple customers keep their spending under control, game sales suffered a 14% decline over last year. According to Woodring, this effect results from Apple customers reining on their spending due to economic downtime.
"We believe the recent App Store results make clear that the global consumer has somewhat de-emphasized App Store spending in the near term as discretionary income is reallocated to areas of pent-up demand," Woodring said.
Apple made a similar assumption in its latest earnings report. Cupertino speculated that the economic recovery might be happening slower than it seems because people still want at-home entertainment since there was a pandemic a few years ago.
In total, Apple's app store took in $4 billion last month, which accounts for 12% of the company's overall revenue of $49 billion during the third quarter. This also represents a 32% year-on-year drop.
Android developers have also been kept from declining revenue. Morgan Stanley predicts a nine percent drop in Play Store revenue last month. Roughly twice as much as the App Store.
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