Apple's App Store Revenue Growth Slows Down
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 20 2026
0mins
Should l Buy AAPL?
Source: seekingalpha
- App Store Revenue Growth: According to data from Morgan Stanley and Sensor Tower, Apple's App Store net revenue has grown 6% year-over-year month-to-date through March 18, reflecting a 310 bps deceleration from February, indicating increased competitive pressure in the market.
- Regional Performance Disparities: In China, App Store revenue increased by 4% year-over-year, while the U.S. and Japan markets saw declines of 2% and 5%, respectively, suggesting significant performance differences across markets that could impact overall revenue structure.
- Strong iPhone Production: Apple’s iPhone builds reached 52 million units this quarter, marking a 12% year-over-year increase, indicating strong demand and expected to drive future shipment volumes, aligning with market expectations of 58 million units shipped.
- Future Shipment Expectations: Based on historical builds-to-shipments relationships, the 52 million builds are expected to translate into 57-58 million shipments, exceeding the consensus estimate of 50 million, further supporting Apple's revenue forecasts.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 270.170
Low
239.00
Averages
306.89
High
350.00
Current: 270.170
Low
239.00
Averages
306.89
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, Wearables, Home and Accessories. Its services include advertising, AppleCare, cloud services, digital content, and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its wearables include smartwatches, wireless headphones, and spatial computers. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Margin Improvement: Non-GAAP gross margin expanded to 41%, driven by better pricing strategies and improvements in manufacturing processes, showcasing the company's success in cost control and product pricing.
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