Apple Inc Revenue Growth

Investing.com — Apple Inc’s (NASDAQ:AAPL) revenue from its App Store grew by 14% in September, bringing the growth rate for the unit to 13% for the fourth quarter, according to analysts at Evercore ISI.

In a note to clients, the analysts added that the quarterly figure should support revenue expansion of roughly 14% in Apple’s services segment for the quarter ended in September. Apple had guided for double-digit growth.

“More stable growth in China and Japan has been a driver of App Store strength in recent months, likely driven by some new gaming title launches,” the Evercore ISI analysts wrote.

They noted that revenues from the App Store in the European Union were up 31% year-on-year in September, despite the implementation of the EU’s Digital Markets Act.

Antitrust regulators from the bloc said last month that they had launched proceedings aimed at ensuring Apple is complying with new rules requiring the tech giant to open its closed ecosystem to rivals. Apple could risk a fine if it does not adhere to these restrictions.

The App Store, along with payments from Alphabet (NASDAQ:GOOGL) for making Google the default search engine on Apple’s browser, are likely the largest components of the services business, according to Evercore ISI.

“So as long as we don’t see any unexpected slowdowns from either business, the faster growing, newer services should be enough to keep growth in double digits, with potential for upside to the mid-teens,” the analysts added.

In the three months until the end of June, revenue at Apple’s services operations, which also include Apple Pay and its TV+ streaming platform, rose to $24.2 billion from $21.2 billion in the year-ago period.

This acceleration supported a 5% uptick in Apple’s total revenue, partially offsetting weaker iPhone demand.