App Store Growth Slows to 3% as Apple Shuts Three Stores and Preps Siri AI
AAPL•May App Store revenues rose just 3%, down 150bps from April with U.S. sales off 7% and AI-app revenues slowing from 190% in January to 94% in May. Apple will shutter three mall stores on June 20 and use Nvidia B200 GPUs via Google Cloud for its next Siri.
1. App Store Growth Deceleration
UBS analysis shows App Store revenue growth slowed to approximately 3% in May, down 150 basis points from April. The U.S. market fell about 7%, and quarter-to-date growth stands near 4%, facing a tougher 12% comparable in June.
2. AI App Revenue Trends
Generative AI-related App Store billings decelerated to roughly 94% year-over-year growth in May, down from 190% in January. This slowdown highlights challenges in maintaining high AI app momentum despite strong developer adoption.
3. Siri's AI Infrastructure Shift
Next-generation Siri is expected to leverage Nvidia Blackwell B200 GPUs via Google Cloud, using confidential compute to encrypt data in processing. This marks a strategic move toward external AI infrastructure to boost voice assistant capabilities.
4. Store Closures Details
Apple will close its Trumbull Mall (Connecticut), North County Mall (California) and Towson Town Center (Maryland) stores on June 20. Employees at two locations will transfer to nearby stores, while Towson staff may apply for roles at other sites.
