Morgan Stanley says Apple's App Store could show better-than-expected revenue growth in the current quarter.
New data from research firm Sensor Tower show August App Store revenue reporting 28% growth year-over-year, which is higher than Morgan Stanley's estimates.
's iPhone sales may be slowing down, but the company's App Store business could show better-than-expected revenue growth in the company's September quarter, Morgan Stanley analysts said in a note Friday. The report comes as Apple is increasingly relying on profits from non-hardware products. Revenue in services, which includes the App Store, Apple Care, Apple Pay, iCloud and Apple Music, are still a smaller revenue contributor than the iPhone, but are expected to become more important over time.
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