- Apple Inc's (NASDAQ:AAPL) App Store saw an acceleration in net revenue growth in March, up 7% year-over-year, below the firm's estimates, Morgan Stanley said.
- Analyst Katy Huberty, who had an Overweight on Apple with a $210 price target (18% upside), estimated that growth would come in at 15% Y/Y, with total Services growth at 20%.
- Huberty also noted that most of the slowing growth came from Japan, which declined 9% Y/Y, China, which fell 1%, and the U.S., which rose 11%.
- Also Read: Here's How The Economics Of Hardware Subscription Can Boost Revenue For Apple, Bernstein Explains How Apple Could Produce $10B In Incremental Revenue
- The rest of the App Store collective grew 16% Y/Y in the March quarter, compared to 21% growth in the December quarter.
- Gaming was the only category to show a Y/Y decline, while entertainment saw net revenue growth of 30%.
- Huberty added that the weakness in the App Store would be "more than offset" by better-than-expected iPhone shipment strength.
- Price Action: AAPL shares traded lower by 1.09% at $176.49 on the last check Tuesday.
