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Apple's App Store Revenue Surges 14%--Here's Why ChatGPT Is a Game-Changer

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Apple's (NASDAQ:AAPL) App Store revenue surged 14% year over year in the first 65 days of 2025, reaching $5.3 billion in sales, according to Bank of America (BofA), which cited data from Sensor Tower.

The biggest driver? ChatGPT. Productivity apps led the way, with segment revenue up 52%, fueled by a surge in ChatGPT usage, where daily active users have nearly tripled year over year. The app has already been downloaded 45 million times in 2025.

Entertainment apps saw the second-highest downloads, while Gaming revenue climbed 7% year over year. Analysts noted a shift in App Store revenue diversification, with non-gaming apps monetizing at a faster pace.

Apple also expanded its Apple TV App to Android devices, improving access for phones, tablets, and foldables.

BofA reiterated its Buy rating on Apple and maintained a $265 price target, highlighting 12% growth in Apple's services revenue so far this year.

This article first appeared on GuruFocus.