Apple’s iPhone sales may be slowing down, but 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 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.
The report comes as Apple is increasingly relying on profits from non-hardware products. Revenue in services, which includes the App Store, Apple Care, Apple Pay, iCloud and Apple Music, are still a smaller revenue contributor than the iPhone, but are expected to become more important over time.
