Apple clings to gains as UBS sees January App Store revenue slowdown

App Store on iPhone


  • Apple (NASDAQ:AAPL) held on to minuscule gains on Tuesday as UBS said it saw a slowdown in App Store revenue during January compared to the prior four months.
  • Revenue last month rose roughly 5%, well below the 10% growth seen between September and December 2023, UBS analyst David Vogt said, citing data from Sensor Tower. The U.S. was the strongest region, up 8% year-over-year growth and unchanged compared to December. However, the rest of the world saw a marked slowdown, down roughly 700 basis points to up just 4%.
  • “The App Store deceleration during [January aligns with management] commentary that suggests Services growth in the Mar-24 quarter should decelerate to low double digits compared to ~17% in Dec-23 and ~16% in Sept-23,” Vogt wrote. “That said, starting in Mar-24 YoY comps are increasingly challenging suggesting Services rev growth could slow to high-single digits in the June, Sept, and Dec qtrs.”
  • Vogt has a Neutral rating and $190 price target on Apple.

Harry Byrne

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