Apple App Store growth shows signs of slowing down
DKart

Apple's (NASDAQ:AAPL) App Store saw just 1% year-over-year growth in net revenue during the month of July, investment firm Morgan Stanley said on Wednesday, citing third-party data.
The data, which comes from Sensor Tower, was below what Morgan Stanley and analyst Erik Woodring were expecting. It was driven by decelerations "across nearly all major markets," Woodring said, adding that net revenue per download declined year-over-year for the first time since April 2020.
Of Apple's (AAPL) top 10 largest markets, which account for 87% of revenue, all but Germany and France saw declines, with China declining 8% year-over-year, a 5 month low.
Revenue in the U.S. declined to just 7% year-over-year and Japan fell 5% year-over-year, despite "stable-to-easier" year-over-year comparisons," the analyst added.
In a research note, Woodring said that with year-over-year comparable sales looking flat between July and August, any "acceleration in growth largely hinges on the strength of consumer spending and demand for digital services in China" as spending patterns return to a more-normal level following Covid-related lockdowns in the country. Woodring added that risk to App Store growth this quarter is skewed to the downside.
For comparison, Morgan Stanley estimated that net revenue for Google (GOOG) (GOOGL) Play store declined 12% year-over-year, though that was up by 1% from June.
If the quarter ended with just 1% year-over-year growth in the App Store, that could impact Apple's (AAPL) all-important services revenue, which Morgan Stanley estimates will grow 10% year-over-year in the coming quarter. 
Apple (AAPL) shares on Tuesday climbed almost 4% to $166.26 heading toward the market close.
On Monday, it was reported that Apple (AAPL) was starting a four-part bond sale, with the proceeds going towards general corporate purposes, including buybacks and dividends.