Apple CFO Kevan Parekh said today that regulatory changes to the App Store are starting to bite, affecting the company’s Services growth. The company released Q3 2026 results, reporting a record $30.7 billion in Services revenue, up 12 % YoY but the first sequential decline since 2022, down from $30.98 billion last quarter.

Parekh explained the slowdown was partly due to “factors that impacted the performance of the App Store,” which traditionally drives a third of Services revenue. Estimates show the App Store contributes almost one‑third of the segment, and gaming apps alone accounted for roughly 70 % of that income.

In addition to regulatory pressure, the year‑over‑year comparison was affected by the 2025 release of the blockbuster F1 The Movie, which had a theatrical run that boosted last year’s quarter. This year, the absence of a theater release helped explain the weaker growth.

Apple also made changes to the App Store business model in markets such as Japan, Brazil and the EU, and the Supreme Court is reviewing its appeal over off‑App Store commissions in the US. Despite these headwinds, the App Store set a June‑quarter revenue record.