App Store revenue tumbled last month amid mobile gaming lull

App Store revenue tumbled last month amid mobile gaming lull

Apple’s App Store revenue fell last month as gaming slowed on smartphones, according to a note from Morgan Stanley.

Analyst Erik Woodring said revenue dropped around five per cent, impacting the US, Canada and Japan.

Using data from Sensor Tower, a firm that tracks app downloads and sales, Woodring said the main driver for the slowdown was gaming revenue, which tanked 14 per cent in September. Over half of spend on in-app purchases comes from gaming apps.

He suggested that Apple customers could be spending less due to economic concerns, and a wider inflationary pressure.

“We believe the recent App Store results make clear that the global consumer has somewhat de-emphasised App Store spending in the near-term as discretionary income is reallocated to areas of pent-up demand,” Woodring wrote.

But it’s not just Apple. Morgan Stanley analysts said they also expect a drop in rival Google Play, with an estimated drop of nine per cent in revenue for September.

However, the note sits in contrast to the wider commentary of a gaming boom.

According to a recent report from GlobalData, games played on smartphones and tablets will make up over 50 per cent by 2030, with the market swelling to $470bn (£409bn) from $197bn.

PwC also reckons the wider global gaming industry will be worth $321 billion by 2026.

Head of gaming at Fieldhouse Associates Max Daniels said that mobile represents just one part of the gaming ecosystem, suggesting that market challenges raised by Morgan Stanley may not reflect the industry at large.

For all the latest Technology News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TheDailyCheck is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected] The content will be deleted within 24 hours.