Morgan Stanley: Apple’s App Store revenue dipped 5% last month

As noted by CNBC, Apple’s App Store revenue declined about 5% in September, according to Morgan Stanley, the steepest drop since the bank started modeling the data in 2015.

The App Store saw declines in markets including the U.S., Canada and Japan, Morgan Stanley analyst Erik Woodring wrote in a report Monday. His analysis was based on data from Sensor Tower, a firm that tracks app downloads and sales.

The investment management and financial services company said the main culprit for the drop was gaming revenue, which was down 14% in September. Apple customers may be spending less due to economic concerns, Woodring wrote.

“We believe the recent App Store results make clear that the global consumer has somewhat de-emphasized App Store spending in the near-term as discretionary income is reallocated to areas of pent-up demand,” Woodring wrote in the note.

CNBC notes that Morgan Stanley analysts also expect to see a drop in sales on Google Play, the primary Android app store. They estimate revenue there fell 9% in September.