Apple's App Store Revenue Seen Rising 13% in Latest Quarter

Revenue from Apple's (AAPL) App Store roseate 13% for nan fiscal 3rd quarter, according to a caller estimate that comes amid concerns astir nan exertion giant's marketplace stock successful China and a caller European Union rule that could effect nan service.

Downloads crossed iPhones and iPads reportedly roseate 3.2% from nan aforesaid clip past year, lifting App Store gross for nan latest 4th to $7.5 billion, according to a Tuesday statement from Bank of America analysts, citing information from Sensor Tower. The analysts maintained a "buy" standing connected Apple banal pinch a $230 value target.

Apple doesn't break retired App Store income erstwhile reporting its full services revenue, but analysts and others make estimated figures.

Revenue successful China, from Apple News Seen Rising

Following concerning income numbers for nan iPhone shaper successful China earlier this year, sales rebounded somewhat successful April and App Store gross successful China roseate 10% successful June, according to nan Sensor Tower data.

Gaming reveneue connected nan App Store is projected to person risen to $3.9 cardinal successful nan quarter, pinch nan conception making up conscionable complete half of App Store income astatine 51%, down from 54% successful nan aforesaid 4th past year. Apple News represented conscionable 1% of total App Store revenue but was nan biggest gainer among nan categories, rising 42% year-over-year.

The analysts task 14% maturation for full services gross to beryllium reported erstwhile Apple releases net early adjacent month, pinch an further 15% of year-over-year maturation projected for nan 4th quarter.

Modest Early Impact for EU's Digital Markets Act

The E.U.'s Digital Markets Act (DMA) went into effect earlier this year, pinch nan extremity of expanding tech title and reining successful nan powerfulness of large tech "gatekeepers" for illustration Apple, Amazon (AMZN), and Alphabet (GOOGL), among others.

Among nan changes nan companies person made to their services to comply pinch nan rule earlier it was enacted successful March was Apple's move to let E.U. users to usage replacement app stores aliases download apps directly from a 3rd party, bypassing nan committee that goes to Apple erstwhile an app is downloaded done its store. European regulators person told Apple those changes don't spell acold enough.

Meanwhile, nan Bank of America analysts said user behaviour was "largely unchanged," pinch a comparatively mini number of downloads utilizing replacement app stores.

The expertise for users to opt for default browsers different than Safari has made immoderate impact, pinch Google Chrome downloads astir tripling year-over-year to a full of much than 10 million, Bank of America's study said. The analysts noted, however, that nan 10 cardinal is still a fraction of nan estimated 200 cardinal to 300 cardinal Apple devices successful Europe.

Apple's shares edged 0.2% higher successful caller trading to a spot supra $228.