Oct 03, 2022 (PressReach.com via COMTEX) -- According to Morgan Stanley, Apple’s ( NASDAQ:AAPL ) App Store experienced its “ biggest decline in the history of the data ” in September, with net revenue falling by 5% year over year. As a result, Apple stock declined this month.
Using data from an independent source called Sensor Tower, Morgan Stanley observed that the App Store of Apple stock remained sluggish in China. At the same time, growth slowed in both Japan and the United States.
App Store spending comes from the top 10 regions. In September, analyst Erik Woodring noted that net revenue growth slowed in all of them except China, Taiwan, and South Korea.
The analyst noted that despite a 9% year-over-year decline in sales in China, net sales have “essentially steadied” since August. The decrease between one year and the next was primarily due to the gaming industry, which saw an 18% drop in revenue.
Japan and the United States experienced slower annual growth of -20% and 5%, respectively, compared to August.
According to Woodring, the overall net revenue from the App Store was $6.4B, which was down 2.1% from the previous year.
The analyst predicts that Apple /zigman2/quotes/202934861/composite AAPL -1.96% Services business will bring in $19.71B in sales for the upcoming quarter, up 7.9% year over year but falling short of the $20.25B that Wall Street is anticipating. As of the 27th of October, we should have Apple’s (AAPL) quarterly report.
Consumer spending is slowing. Not even Apple stock is immune. Still, the December quarter is anticipated to get more accessible due to comparisons, the benefit of an extra selling week, and rising costs due to currency fluctuations.
With discretionary income being shifted to areas of pent-up demand, “we believe the recent App Store results make clear that the global consumer has somewhat de-emphasized App Store purchasing in the near-term,” Woodring wrote.
“Therefore, even if the direction of [year-over-year] growth improves in the December quarter (thanks to the extra selling week), the App Store argument will likely remain a battleground for investors.”
Investment firm Evercore reported on Friday that growing iPhone 14 Pro production delays indicate robust demand.
App Store net revenue dropped 5% in September, marking Apple stock’s “biggest reduction in the history of data.”
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Author: Shariq Khan
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