BofA notes ‘promising’ signs for Apple as App Store revenue rises

Apple (AAPL) App Store revenue increased 11.3% year-on-year in F1Q24, according to BofA analysts in a note Tuesday.

Apple shares (NASDAQ:) are up around 2% at the time of writing, trading above the $193 per share mark.

“As per SensorTower data, App Store revenues in F1Q24 (after 61 days) increased to $4.5bn (+11.3% y/y, according to data on developer revenues from SensorTower), with total downloads (iPhone + iPad) increasing +4.7% y/y,” explained the analysts, who maintained a Neutral rating and $208 price target on the stock.

“For the month of November, App store revenue in China increased 8% y/y after increasing 10% y/y in October,” they added. The analysts note that given the September media reports about a ban on iPhones at government locations in China, the strong September, October, and November app store data is “promising for Apple.”

“So far in F1Q24 (61 days), app store dollars per download increased +6.4% y/y,” said the analysts. In addition, overall App Store trends are said to have improved year-on-year in November globally and in the US.

“We maintain our Neutral rating as positive catalysts of new product introductions and stable iPhones are offset by a potentially weaker consumer spending environment,” the analysts concluded.