Apple continues to see 'muted' App Store growth in Q2: BofA
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Bank of America said on Monday that Apple (NASDAQ:AAPL) is still seeing "muted" growth in the App Store more than 60 days into its fiscal second-quarter.
Citing third party data from Sensor Tower, analyst Wamsi Mohan noted that revenue grew just 0.5% year-over-year as of March 1, including 1.5% year-over-year growth in China. Total downloads have not fared much better, with downloads for the iPhone and iPad up just 0.8% year-over-year. 
"So far in the March quarter, we have seen app store dollars per download increase 1.3% [year-over-year]," Mohan wrote in an investor note. "We continue to worry about an overall decline in consumer demand."
In February, Mohan also said that Apple (AAPL) was seeing "muted" App Store growth.
Delving deeper, Mohan noted that revenue related to gaming has fallen 6.4% year-over-year to $2.5B for the quarter, accounting for roughly 56% of total App Store revenue, down from 60% in the year-ago period. China, however, has seen a bit of a rebound, rising 2.3% year-over-year as of March 1, though gaming downloads in the country plummeted 20% year-over-year.
Last month, China's gaming regulatory approved 87 domestic games, on back of the 88 it approved in January.
Despite the "muted" growth in the second-quarter, Mohan expects Apple (AAPL) to see a "re-acceleration" starting next quarter as the macro economic outlook improves.
Separately on Monday, investment firm Goldman Sachs started coverage on Apple (AAPL) with a buy rating.