Apple seeing 'modest' re-acceleration in App Store, China, BofA says
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Apple (NASDAQ:AAPL) shares fell early on Tuesday even as investment firm Bank of America said the tech giant was seeing a "modest" re-acceleration in spending and downloads on the App Store, while also seeing some additional improvements in China.
Analyst Wamsi Mohan, who rates Apple (AAPL) shares buy with a per-share price target of $200, noted that global App Store revenue in the current quarter has risen 7% year-over-year to $2.6 billion, as of April 30, citing data from Sensor Tower.
The data also showed that total downloads on iPhones and iPads are up 5% year-over-year to 3.2 billion, with the average selling price per download up 1.7% year-over-year. 
In contrast, App Store revenue grew about 6% year-over-year in the company's recent quarter.
Separately, App Store revenue in China grew 11% year-over-year in April, compared to 6% growth in March, while downloads grew 9% year-over-year in April, versus just 6% in March. 
"We note that app store compares get materially easier over the next several [quarters] that can drive a re-acceleration," Mohan wrote in a note to clients. 
"Over time, we expect Licensing (advertising), Apple Care and new services (TV+, Fitness+, Arcade+, News+, Apple One Subscription bundles) to scale in user content and features, contributing to the overall services revenue growth."
Apple (AAPL) shares fell slightly more than 1% to $141.35 in premarket trading on Tuesday.
In addition, Mohan noted that China gaming revenue has grown faster than the global market quarter-to-date, up 13% year-over-year, with gaming downloads up 19% year-over-year. 
Last month, the Chinese government restarted approving gaming licenses.
"Given the slightly favorable stance from regulators and ongoing lockdowns in China, we potentially see upside to the China App Store growth in [second-half of 2022]," Mohan added.
On Monday, investment firm UBS said it saw the highest purchase intent in China for the Apple (AAPL) iPhone in six years, following a recent survey.