App Store revenue grew 12% YoY in June 2025, with a major shift toward non-gaming categories like productivity, photo & video, and education.
App Store Revenue Surges While Gaming Spend Dips
June 2025 brought some good news for Apple’s App Store. According to a report by Investing.com which cites new data from Bank of America (via SensorTower), App Store revenue jumped 12% year-over-year, outpacing download growth, which was up just 4%. That means Apple is making more money per download, but here’s the twist: users are spending less on games.
Gaming Still Leads, But Not by Much
Gaming has long been the App Store’s cash cow, but that dominance is starting to fade. It now makes up only 45% of total App Store revenue, a drop from over 50% in recent years.
This doesn’t mean people aren’t playing games anymore, it means they’re spending their money elsewhere.
Productivity and Lifestyle Apps Take the Lead
Categories that saw growth include:
- Productivity (+2% share)
- Photo & Video, Lifestyle, Books, Education, Utilities (+1% each)
That’s a big win for developers outside the gaming industry, and potentially for Apple too. These apps often feature subscriptions and in-app services, which can drive recurring revenue — a more stable business model over time.
A Sign of Changing User Habits
This shift suggests users are leaning more into apps that boost creativity, organization, and learning, especially as more people rely on their phones for work and self-improvement.
It’s also a signal to developers: new monetization models are working, even without the loot boxes and gacha mechanics of mobile games.
What About the Epic Games Fallout?
Interestingly, Bank of America says Apple’s legal scuffle with Epic and increased regulation hasn’t made a dent in revenue… at least, not yet.
Apple’s Stock Outlook: Still Bullish
Despite some recent pessimism (like JPMorgan trimming its target), Bank of America reiterated its “Buy” rating on Apple stock, with a $235 target. That optimism stems from Apple’s:
- Strong capital returns
- On-device AI leadership
- Future product innovation (hello, Vision Pro, Siri upgrades, and maybe foldables?)
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