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BofA analysts said in a note Thursday that Apple (NASDAQ:AAPL) App Store revenue declined in the low single-digit year-over-year in the quarter to date for fiscal Q1 2023.
“Global App Store rev in F1Q23 QTD declined to $4.4bn (-3% y/y through Nov 29th, according to data from SensorTower), with total downloads (iPhone + iPad) up 3% y/y,” wrote the analysts. “This compares to flat y/y revenue growth at this point in F4Q22 (66 days).”
The analysts, who maintained a Neutral rating and $154 price target on the stock, said that for November, as of the 29th, App Store revenue in China declined 4% year-over-year. The prior year, China App Store revenue grew by 2% in Nov 2021.
“Recent app store price increases in certain regions (as a response to the stronger dollar) can partially offset the decline in dollars per download (-6% y/y in F1Q23 QTD). We continue to be concerned about an overall decline in consumer demand,” the analysts added.
They went on to explain that gaming revenue continues to decline double-digit year-over-year, while the U.S. and China make up 58% of App Store revenue.
