Morgan Stanley: Revenue from the Apple App Store accelerated growth in July, and the Epic lawsuit ruling has not yet had a negative impact
Morgan Stanley's latest research report shows that Apple's App Store revenue accelerated growth in July, particularly performing strongly in the U.S. market. In the first 20 days of July, App Store revenue in the U.S. surged by 12.5% year-on-year. Despite the ruling in the Epic Games lawsuit against Apple, App Store revenue continues to maintain its growth momentum. Apple is expected to announce its fiscal year 2025 third-quarter financial report on July 31, with the market generally anticipating revenue to reach $88.89 billion and earnings per share of $1.43
According to the latest research report from Morgan Stanley, Apple (AAPL.US) App Store revenue showed accelerated growth in July, particularly strong in the U.S. market, with no apparent negative impact from the ruling in the Epic Games lawsuit against Apple.
Data from Sensor Tower indicates that in the first 20 days of July, App Store revenue in the U.S. surged 12.5% year-on-year, further accelerating from June's 11.5% year-on-year growth. The Chinese market saw a year-on-year increase of 7.1%, while the Japanese market declined by 1.9%, and other global regions experienced a remarkable year-on-year growth of 21%.
Analysts at Morgan Stanley, led by Eric Woodring, noted in a report on Tuesday: "If we take July 20 as the cutoff date for the third fiscal quarter, the year-on-year growth of App Store net revenue will reach 12.6%, which is 210 basis points higher than our original forecast of 11.0%. All else being equal, this will provide an upside of 60 basis points (approximately $160 million) to our projected 11.7% growth rate for the services business in the September quarter (market consensus expectation is 10.8%)."
It is noteworthy that investment institutions found that despite the ruling in the Epic Games lawsuit against Apple, App Store revenue continues to maintain its growth momentum. Woodring stated: "More than two months have passed since the injunction between Apple and Epic was issued, and despite the risks of external payment links, we have not observed any substantial impact on Apple's monetization capabilities in the U.S. App Store."
Apple is set to announce its fiscal year 2025 third-quarter financial report on July 31. The market generally expects its revenue to reach $88.89 billion, with earnings per share of $1.43
