Apple Inc's App Store Revenue Growth
Investing.com — Apple Inc's (NASDAQ:AAPL) App Store saw robust revenue growth through November, with Evercore highlighting Asia as a significant contributor. Sustained strength in the App Store is expected to boost overall services revenue.
Revenue Insights
- November Growth: 16% year-on-year, up from 15% in the previous month.
- Key Markets: China and Japan emerged as the largest revenue sources, while European revenue remained strong despite the Digital Markets Act enabling app side-loading on Apple devices.
Future Projections
Evercore indicated that if the App Store maintains double-digit growth, it could lead to stronger services revenue. This might help Apple surpass its revenue guidance, expecting a 13% growth in services during the December quarter.
Stock Outlook
The brokerage upheld its Outperform rating for Apple, setting a target price of $250.
Challenges Faced
Apple's services revenue is increasingly crucial as it compensates for slow device sales, particularly the flagship iPhone 16 amid heightened competition and regulatory challenges in China. Additionally, the introduction of new artificial intelligence features has not significantly boosted device sales, with IDC forecasting only a 0.4% increase in device shipments through 2024.
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