Apple App Store sees growth in December, first time since June
Wachiwit

Apple (NASDAQ:AAPL) saw net revenue growth for its App Store in December, its first growth since June, implying that there could be "upside" in its services segment, Morgan Stanley said on Tuesday.
Analyst Erik Woodring, who has an overweight rating and a $175 price target on Apple (AAPL), noted that net revenue grew 1% year-over-year, citing data from Sensor Tower. That would imply a 2 point improvement from November.
Delving deeper, Woodring noted that net revenue growth improved in 8 of Apple's (AAPL) 10 largest markets, including China, where it rose 2 points to see 2% year-over-year growth; Japan, which rose 1 point to -19% year-over-year growth; and the U.S., which was unchanged at 7% year-over-year growth.
Growth in gaming largely led the way, with Woodring stating that recent approval in gaming licenses by the Chinese government was partially responsible for the uptick in growth, as were easier comparisons. 
"With results from the month of December now finalized, we estimate December quarter App Store net revenue reached $6.3B," Woodring wrote in the note to clients. Assuming no other changes, Woodring estimated that Apple's (AAPL) Services revenue likely rose 6.7% year-over-year to $20.8B in the quarter, near the consensus estimate of $20.9B and above Morgan Stanley's own estimate.
Going forward, Woodring added that Apple (AAPL) should see net revenue growth accelerate in each quarter of fiscal 2023 as year-over-year comparisons ease up, spending trends normalize and the company benefits from price hikes in international markets.
"While App Store growth remains near its lowest levels in history, and we acknowledge the global consumer remains challenged, we are encouraged to see growth trajectory continue to improve after bottoming in September," Woodring added.
Apple (AAPL) shares rose nearly 1% in premarket trading on Tuesday.
Separately on Tuesday, it was reported that Apple (AAPL) and its manufacturing partner are getting closer to operating at full production for its iPhone 14 product line.