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Apple poised to report huge growth in App Store sales, Morgan Stanley says

September 6, 2019

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.

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