UBS Warns Decelerating App Store Growth May Limit Apple Services Upside

On June 4, 2026, UBS cautioned that slowing App Store momentum could curb Services revenue upside after May growth slipped to ~3% with generative AI app growth halving to 94% YoY. This follows Apple's release of $1.4 trillion in 2025 billings, a $100 billion increase from 2024, with 90% commission-free and AI-enabled apps driving fourfold revenue gains. The contrast highlights robust platform scale ahead of WWDC while underscoring risks from regulatory scrutiny and geographic concentration.