Apple shares fell Friday (June 3) after Morgan Stanley analysts warned that revenues from the company’s App Store had begun to slow.

According to The Street, Morgan Stanley analyst Katy Huberty said App Store revenues rose 6% compared to this time last year, but a tougher June comparison could mean the company will have trouble meeting its the bank’s goal of 15% net quarterly revenue growth.

Huberty added that she suspects App Store revenues will begin to pick up toward the end of the year, the report said.

Learn more: Apple Uses Developer Revenues to Defend App Store Practices

Last month, Apple used the revenues the App Store generates for developers to defend against rising criticism of its store policies.

The company cited a study showing that developers who made under $1 million a year from the App Store saw their revenue increase 113% over a two-year period beginning in 2019.

Apple in 2020 halved its commission for developers who generated less than $1 million in the previous calendar year, which could have helped fuel the increase in revenue. The company typically charges a 30% fee, but developers in its small-business program pay 15%.

The App Store has come under fire in U.S. and a number of European countries as part of a larger crackdown on big tech companies. Europe’s Digital Markets Act, along with a two pieces of legislation pending in the U.S., would have a major impact on Apple’s App Store rules.

See also: Apple to Keep iPhone Production Flat for 2022

Also last month, Apple said it will keep production of its iPhone more or less flat this year, asking suppliers for around 220 million iPhones, close to the same amount as in 2021.

That figure is 20 million units below market forecasts, which were based on a planned update to the iPhone set to arrive sometime later this year.



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