DKart
Apple (NASDAQ:AAPL) shares dipped by 2% Tuesday as a new report said the company is seeing some weakness in sales from its vaunted App Store.
Morgan Stanley analyst Wamsi Mohan cited a report from app industry researcher Sensor Tower that said Apple’s (AAPL) App Store sales in the three months that ended October 30 fell 4% from the same period a year ago, to $2.4B. Conversely, Mohan said the Sensor Tower data shows total App Store downloads for both iPhones and iPads rose 2% on a year-over-year basis
Mohan noted that the United States and China combined for more than half of all App Store revenue, with the U.S. accounting for 33% of sales, and China making up 26% of the store’s revenue during the period under scrutiny.
Apple (AAPL) doesn’t break out specific revenue it takes in from App Store sales. The area that would most likely be included would be Apple’s (AAPL) services business, which took in $19.2B in sales in Apple’s (AAPL) recent fiscal fourth quarter.
Among the Sensor Tower data that Mohan said stood out was App Store revenue from China falling 3% in October on a year-over-year basis. Mohan also said the decline in gaming revenue from China was likely due to a slower pace of approvals for gaming licenses, and a higher rate of unemployment among Chinese youths.
Last week, Apple (AAPL) got a boost on Wall Street following its quarterly results that were led by sales of iPhones and services.
