Apple's (NASDAQ:AAPL) App Store revenue has seen stronger growth in the third quarter, BofA analysts told investors in a note Friday.
Citing SensorTower data, they said App Store revenues in F3Q23 (after 91 days) increased to $6.6 billion, up 5.9% year-over-year, with total downloads (iPhone + iPad) increasing 4.3% year-over-year.
"For the month of June, App Store rev in China increased 7.5% y/y," the analysts, who have a Neutral rating and a $190 price target on Apple shares, explained. "In F3Q23, we saw app store dollars per download increase 1.5% y/y."
In addition, they noted that App Store trends marginally improved in the June quarter from the March quarter.
"We maintain Neutral on risk-reward balance, where positive catalysts of new product introduction (AR/VR headset) and stable iPhones is offset by a potentially weaker consumer spending environment in 2H23," the analysts concluded.