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Analysts said revenue growth for the App Store in the quarter rose by 5.9% year-over-year, in line with their 6% forecast.
“Although Apple reports GAAP results including swings in FX rates, we believe adjusting for FX volatility is a better indicator of underlying demand,” wrote analysts.
“In addition, given Covid impacts, we believe growth over a 2-year period is a more robust indication of durable growth,” they added.
Furthermore, adjusting for FX, UBS estimates App Store revenue increased by 7% YoY in the June quarter compared to 5% in the March quarter and 4% in the December quarter.
However, analysts noted that “while the sequential acceleration is a modest positive, the improvement is largely due to easier comps in June-22 relative to March-22.”
UBS believes FX headwinds should moderate ~100bps in the June quarter from March. In addition, the firm forecasts 10% services growth in the September quarter, which they state “should be reasonable.”
