EU's new regulations have limited impact, Apple App Store revenue in August increased by 12% year-on-year
Apple's App Store saw a 12% year-on-year revenue growth in August, with a 15% increase in the United States, a 9% increase in China, and a 17% increase in the United Kingdom. Despite facing global challenges, the App Store's revenue in the European Union grew by 25% year-on-year. Analyst Amit Daryanani pointed out that the growth was driven by new game releases and maintained an "outperform" rating on Apple with a target price of $250
According to the latest information from Zhitong Finance and Economics APP, despite facing challenges in some regions globally, Apple (AAPL.US) App Store's revenue in August still grew by 12%.
Analysts at Evercore ISI, led by Amit Daryanani, stated in an investor report on Tuesday, "Steady growth in China and Japan in recent months has driven strong growth in the App Store, possibly fueled by the release of some new games. It is worth noting that despite the EU's Digital Markets Act (DMA) requiring adjustments to the App Store, revenue in the region in August increased by 25% year-on-year and 4% month-on-month."
Last month, Apple made several adjustments to the operation of its App Store in EU countries to comply with the Digital Markets Act.
Evercore stated that if the App Store continues to maintain this growth momentum, Apple's revenue in the services sector will achieve a growth target of 11% to 14%.
Daryanani pointed out, "The App Store and Google (GOOGL.US) payments are likely the two largest components of the service business, so as long as these two businesses do not unexpectedly slow down, faster-growing new services should be sufficient to maintain double-digit growth, with the possibility of moving up from single digits."
By region, in August, the App Store revenue in the United States increased by 15% year-on-year, China by 9%, the UK by 17%, and Canada by 13%. According to Evercore's data, Japan and Taiwan recorded year-on-year declines of 3% and 4% respectively.
The growth in the App Store for the month mainly focused on entertainment applications, with a 32% year-on-year increase.
Evercore maintains its "outperform" rating on Apple with a target price of $250. Over the past year, Apple's stock price has fluctuated between $164 and $237, with an increase of approximately 16%