Apple says App Store regulatory changes are beginning to affect Services growth

Apple reported record Q3 Services revenue of $30.7 billion, but growth slowed and the segment declined sequentially for the first time since 2022.

CFO Kevan Parekh said weaker App Store performance, softer mobile gaming, and regulatory model changes in several countries were the main drags.

US link-out transaction rules from the Epic case also continued to pressure results, while last year’s F1 The Movie release created a tougher comparison.

The slowdown suggests App Store regulation is starting to weigh on one of Apple’s biggest profit drivers.