Evercore ISI: Apple App Store revenue will grow 12% year-on-year in August 2024

Despite challenges in some parts of the world, Apple's App Store revenue grew 12% in August. Evercore ISI analysts led by Amit Daryanani said in an investor note on Tuesday: "Strong growth in the App Store has been driven by more stable growth in China and Japan in recent months, which may be driven by the release of some new games. It is worth noting that despite the EU's Digital Markets Act (DMA) requiring the App Store to make adjustments, App Store revenue in the region grew 25% year-on-year and 4% month-on-month in August."

Last month, Apple made a number of changes to how its App Store operates in EU countries to comply with the Digital Markets Act.

Evercore said that if the App Store continues to maintain this growth momentum, Apple's revenue in the service sector will reach its growth target of 11% to 14%.

“The App Store and Google Pay are probably the two largest components of the Services business, so as long as there is no unexpected slowdown in those two businesses, the faster-growing new services should be enough to maintain double-digit growth with the potential to rise from the mid-single digits,” Daryanani noted.

By region, App Store revenue in the United States grew 15% year-on-year in August, China grew 9%, the United Kingdom grew 17%, and Canada grew 13%. According to Evercore data, Japan and Taiwan recorded year-on-year declines of 3% and 4%, respectively.

The App Store's growth that month was mainly concentrated in entertainment apps, which increased by 32% year-on-year.

Evercore maintained its "outperform" rating on Apple with a price target of $250. Over the past year, Apple's stock price has fluctuated between $164 and $237, an increase of about 16%.

Zhitong Finance