Apple App Store in line with UBS's expectations ahead of Q1 results
DKart


Apple (NASDAQ:AAPL) provided details on the health of the App Store earlier this week, disclosing that it had paid developers more than $320B since inception. Investment firm UBS said the financial details from the release showed that while growth slowed in 2022, it performed in-line with the firm's expectations.

"While growth slowed to 23% in [calendar year 2022] from 30% in [calendar year 2021] (Covid tailwind), the "$320 billion" disclosure is in-line with our ~$322 billion estimate," analyst David Vogt wrote in a note to clients.
It's believed that roughly 25% of Apple's (AAPL) Services revenue comes from the App Store, giving investors an indication into the health of the segment. Other components include Apple Music, iCloud+, Apple TV+, Apple Arcade and its subscription service, Apple One.
The disclosure comes as Apple (AAPL) gets set to report fiscal first-quarter results next month, with much of investors' attention focused on its all important Services division.
Apple (AAPL) shares rose fractionally in premarket trading on Thursday.
On Wednesday, Barclays cut its estimates on Apple (AAPL) citing recent production issues in China and "weakening demand" across certain hardware categories.