Apple’s (AAPL) Services business has become one of the company’s most important growth engines. But a new report from Goldman Sachs suggests that one key part of that business is starting to slow, and faster than many might think.
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Top Goldman analyst Michael Ng said App Store spending grew only 6% in November, down from 9% in October. That may sound small, but it’s part of a wider trend. App Store growth has now halved since July, when spending was rising 12% year-over-year.
So what’s behind this cooling?
Ng says the pullback is showing up in the App Store’s biggest category: Games, which make up 44% of total spending. Game spending fell 2% in November after rising 3% in October. On top of that, four of Apple’s top five markets — the U.S., Japan, the U.K., and Canada — slowed last month. Together, these regions account for more than half of Apple’s App Store revenue.
And the risks don’t stop there. Ng notes that off-app payments, which allow developers to bypass Apple’s fees, could further hit App Store growth in the coming quarters.
So yes, this part of Apple is losing steam. But here’s the twist.
Despite all these signs of pressure, Ng still expects Apple to meet its Services growth targets for Fiscal Q1 2026. Apple guided for Services revenue to grow at roughly the same 14% pace it delivered in Fiscal 2025, and Goldman thinks that is still achievable.
This is because while the App Store is slowing, almost every other Services category is picking up speed. He pointed to Apple’s latest quarterly report, where Services revenue rose 15%, up from 13% the prior quarter. That jump happened even as App Store growth likely weakened.
In his view, the broader Services story remains intact. Apple may be seeing slower growth in Games and key markets, but the strength across its wider ecosystem is more than offsetting the slowdown. And that is why Ng keeps his Buy rating and $320 price target on the stock.
The App Store may be losing steam, but Apple’s bigger Services engine is still running strong.
Is AAPL Stock a Buy?
Turning to Wall Street, Apple stock has a Moderate Buy consensus rating based on 21 Buy, 12 Hold, and two Sell recommendations assigned in the last three months. The average AAPL price target of $289.49 implies 1.15% upside risk from current levels.
