A new business report published late yesterday stated that while Apple’s iPhone sales may be slowing down, the company’s App Store business could show better-than-expected revenue growth in the company’s September quarter, Morgan Stanley analysts said in a note to clients on Friday.
Morgan Stanley pointed to new research from app data tracking firm Sensor Tower, which shows that August App Store revenue saw the strongest year-over-year growth since February 2018 and the largest month-over-month acceleration since early 2015. The firm maintained its overweight rating and $247 price target on Apple’s stock.
Sensor Tower data shows App Store revenue growth accelerating 28% year over year in the month of August, a meaningful uptick from July, when it saw revenue growth of 18.9% year over year.
Morgan Stanley analyst Katy Huberty added to the report that "Even considering the expected [foreign exchange] headwind, App Store revenue is on track to beat our September quarter forecast of +18% Y/Y …"
The report comes as Apple is increasingly relying on profits from non-hardware products. For more, read the full CNBC report.