Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Apple Services Revenue Tracking Below Consensus for June Quarter - Morgan Stanley

Stock Markets Jul 05, 2022 13:48
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Senad Karaahmetovic

After analyzing Sensor Tower data for June, Morgan Stanley analyst Katy Huberty sees a risk of Apple (NASDAQ:AAPL) missing on App Store revenue growth consensus as far as the June quarter is concerned.

The analyst projects that the App Store net revenue growth decelerated to +2.5% Y/Y in June vs. 4% Y/Y in May, driven by a bigger-than-expected deceleration in China. This could imply App Store net revenue growth rose 5% Y/Y in the June quarter, below Morgan Stanley’s forecast of 6%.

“App Store net revenue growth in China inflected to 6% Y/Y declines in the month of June (slightly better than we previewed in mid-June) vs.3% Y/Y growth in May, accounting for more than 100% of the total App Store deceleration in June vs. May,” Huberty explained in a client note.

Assuming that other Apple Services segment estimates are unchanged, Huberty sees Apple Services revenue at $19.46 billion, below Morgan Stanley and Street’s consensus of $19.52 and $19.71 billion, respectively.

“We see a path for App Store growth to reaccelerate in C2H22, as Y/Y compares for the remainder of the year (and into CY23) ease each successive quarter, with 2-year stacked growth compares decelerating after 2Q as well. More cautious US Consumer spending survey data as well as a continued reopening of China post-COVID lockdowns will be the two key factors investors need to follow closely to track the trajectory of App Store performance in the September quarter, in our view,” Huberty concluded.

Apple Services Revenue Tracking Below Consensus for June Quarter - Morgan Stanley
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email