Market Overview

App Store Data Suggests Healthy Revenue Trends For Apple

Share:
App Store Data Suggests Healthy Revenue Trends For Apple

Nomura's Sensor Tower data for Apple Inc. (NASDAQ: AAPL)'s app store shows “very healthy growth in iOS downloads and revenue trends,” analysts Jeffrey Kvaal and Gregory McNiff said in a report issued Wednesday.

While the ongoing quarter and the upcoming one might bring some disappointing iPhone figures, early data for the first quarter of fiscal 2017 has suggested year-over-year growth could return. Nomura's thesis still points toward iOS subscriber growth driving a 5-10 percent iPhone unit growth rate in 2017.

Related Link: Analyst: Estimates For Apple's Q4, FY17 'Remain Too High'

Over the third fiscal quarter, Apple saw TTM iOS downloads surge 11 percent, outperforming Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG)’s Android, Kvaal and McNiff pointed out. Top English language apps saw a 22 percent increase, and except for Spotify, they were all games. From this data, the analysts infer the iOS subscriber base of more than 500 million “continues to grow at a healthy, if not robust, pace.”

TTM iOS app revenues are up 66 percent, the report continued. With the App Store considered to be the largest of several contributors to the growth of Apple’s Services unit, the firm’s estimate of 20 percent growth becomes more visible.

Nomura maintains a Buy rating and $120 target price on shares of Apple.

Disclosure: The author holds no interest in any of the securities or entities mentioned above.

Latest Ratings for AAPL

DateFirmActionFromTo
Aug 2020WedbushMaintainsOutperform
Aug 2020Wells FargoMaintainsOverweight
Aug 2020B of A SecuritiesDowngradesBuyNeutral

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

 

Related Articles (AAPL)

View Comments and Join the Discussion!

Posted-In: App Store iOS NomuraAnalyst Color Price Target Reiteration Analyst Ratings Tech Best of Benzinga

Latest Ratings

StockFirmActionPT
ZTSTruist SecuritiesMaintains160.0
WLKTruist SecuritiesMaintains60.0
UNVRTruist SecuritiesMaintains21.0
TRIPTruist SecuritiesMaintains25.0
TTDTruist SecuritiesMaintains450.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com