According to a note from Bank of America, Apple’s global App Store revenue surged 12% year over year in June, supported by continued growth outside its traditionally dominant gaming category.
Sam Boughedda for Investing.com:
Citing SensorTower data, BofA said App Store revenue rose to $8.4 billion in Apple’s fiscal third quarter, an 11.5% increase from the same period last year. Downloads grew more modestly, up 4.3% to 8.6 billion, while revenue per download increased 6.9% to $0.98.
June’s 12% revenue growth outpaced the 3% increase in downloads for the month, reinforcing a positive revenue mix shift, said BofA.
Gaming, while still the largest category, accounted for just 45% of total App Store revenue in the quarter, down from more than 50% in prior years.
BofA noted that “Photo & Video, Lifestyle, Books, Education, & Utilities each grew 100 basis points,” while “Productivity grew 200 basis points, marking the highest percentage change… We believe either scenario in the ensuing years could be a long-term tailwind for AAPL’s app store revenue.”
Despite recent concerns over off-app payments following the Epic Games ruling, BofA said there is “no indication of adverse impact” on revenue to date.
MacDailyNews Note: In it’s full note, BofA reiterated its “Buy” rating and $235 price target on Apple, citing “strong capital returns, [with Apple eventually becoming the] winner at AI at the edge and optionality from new products/markets.”
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