Apple App Store revenue rose 14% year-over-year in September: Investing.com's BofA

Investing.com – Apple's (NASDAQ:) App Store revenue rose 14% year-over-year in September, according to a Bank of America report.

The bank said in a statement on Wednesday that the increase was due to strong global demand. Data from SensorTower showed that Apple's App Store revenue for the fourth quarter of fiscal 2024 (F4Q24) totaled $7.8 billion, up 13.6% year-on-year.

During the same period, total app downloads (iPhone and iPad) increased 5.5% to 8.9 billion.

“Despite being the second-largest category of apps, entertainment app revenue increased +33% year-over-year in the fourth quarter (according to data from SensorTower), the third-fastest growing category in the quarter,” BofA said.

They explained that this was largely due to popular apps such as YouTube and TikTok, which reported year-over-year revenue growth of 24% and 52%, respectively.

Meanwhile, gaming apps, which still dominate App Store sales, rose 6% from a year ago to $3.9 billion, although they now account for 50% of total sales, compared with 54% a year ago, according to the bank Year.

According to BofA, China, one of Apple's key markets, saw App Store revenue increase 6% year-on-year in September, while the entertainment segment reported 21.9% year-on-year growth. However, gaming revenue in China remained flat, increasing by just 0.2%.

BofA analysts also noted that the European Union's Digital Markets Act (DMA) has had minimal impact on App Store downloads, suggesting that consumer behavior in the region has remained largely unchanged.

The bank expects Apple's services revenue to maintain its growth trajectory, forecasting a 14% year-over-year increase in both the fourth quarter of 2024 and the first quarter of 2025. It cites services resilience as a long-term bullish indicator of the company.