Apple’s App Store, the digital toll booth that has minted money for the better part of two decades, is finally showing cracks. Morgan Stanley’s analysis of Sensor Tower data reveals that App Store net revenue dropped approximately 0.6% year-over-year through mid-August 2026, marking the first such decline in four years.
The numbers behind the slowdown
The damage is most visible in the United States. Consumer spending through the App Store fell 6% year-over-year in the second quarter of 2026. For context, that same metric showed a 9% increase the year before.
Global spending fared slightly better, rising 3%, but that figure looks anemic next to the 13% growth recorded in the prior year.
Apple’s commission revenue in the US has dropped 18% year-to-date in 2026, according to Appfigures data. Similar declines are showing up in Brazil and Japan, where comparable regulatory shifts have taken hold.
