Investing.com -- Apple (NASDAQ:AAPL)'s App Store revenue rose 14% year-over-year (y/y) in September, according to a report from Bank of America.
The bank said in a note Wednesday that the increase was driven by strong global demand, with SensorTower data showing that Apple's App Store revenue for the fourth quarter of fiscal year 2024 (F4Q24) totaled $7.8 billion, a rise of 13.6% y/y.
In the same period, total app downloads (iPhone and iPad) grew by 5.5%, reaching 8.9 billion.
"Despite being the 2nd largest category of Apps, Entertainment app rev grew +33% y/y in F4Q (according to data from SensorTower), the 3rd fastest growing category during the qtr," said BofA.
They explained that this was largely due to popular apps like YouTube and TikTok, which saw revenue growth of 24% and 52% y/y, respectively.
Meanwhile, Gaming apps, which still dominate the App Store's revenue, grew by 6% y/y to $3.9 billion, although they now account for 50% of total revenue compared to 54% a year ago, according to the bank.
BofA said China, one of Apple's key markets, saw App Store revenue rise by 6% y/y in September, while its entertainment segment posted a 21.9% y/y growth. However, gaming revenue in China remained flat, increasing by just 0.2%.
BofA analysts also noted minimal impact from the European Union's Digital Markets Act (DMA) 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, projecting a 14% y/y increase for both F4Q24 and F1Q25, citing the resilience of the company's services as a long-term bullish indicator.