Apple’s App Store revenue rose just 3% in May, down from April, with US sales declining 7%, UBS said.
UBS maintained a Neutral rating on Apple (NASDAQ:AAPL) with a $296.00 price target after App Store growth slowed to 3% in May, the first low-single-digit increase this year. The deceleration was driven by a 7% decline in US revenue, offsetting gains elsewhere.
App Store growth had remained in the single-digit range year-to-date but dipped further in May. June faces a tough comparison, with a 12% year-over-year comp, though 130 bps easier than May’s hurdle. The firm noted ongoing challenges in the near term.
Apple’s services segment, including the App Store, has been a key growth driver amid fluctuating hardware demand. The slowdown adds pressure as investors weigh AI-driven opportunities against near-term headwinds.