Apple’s global App Store revenue soared by 15% year-over-year, reaching $8.6 billion in fiscal Q2 2025. This impressive performance is driven by a surge in app downloads and increased monetization strategies. Bank of America analysts emphasize that Apple’s service growth reflects stable cash flows and potential gains fueled by artificial intelligence integration.

Key Highlights

• Revenue and Downloads:
  SensorTower data shows total app downloads on iPhone and iPad rose by 5% YoY to 8.9 billion, while revenue per download increased by 9% YoY, now at $0.95.

• Monthly Growth:
  March alone saw a global revenue increase of 11% in the App Store.

• Top Performing Segment:
  Productivity apps surged by 54% YoY, driven by adoption of ChatGPT-powered applications.

• User Engagement:
  Daily active users (DAUs) for ChatGPT on the App Store jumped from 4 million in January to 20 million in March. On the Unified App Store, DAUs surged from 13 million to nearly 75 million.

• Apple TV Expansion:
  Encouraging numbers arise as Apple TV expands to Android devices, averaging around 1.5 million DAUs in March, presenting bright long-term subscription potential.

Future Outlook

Bank of America projects that Apple’s total services revenue will grow by 12% year-over-year in fiscal Q2 2025 and by 13% throughout the entire fiscal year. The Bank maintains a Buy rating for Apple with a price target of $265, noting that estimates may be conservative if App Store growth continues at its current pace.

For investors interested in exploring more detailed financial narratives for Apple, Entreprenerdly.com offers comprehensive data insights.