Apple's App Store Defies Epic Games Ruling with Surging Revenue Growth in July

Morgan Stanley's latest research indicates that Apple's (AAPL.US) App Store revenue experienced accelerated growth in July, displaying particular strength in the U.S. market. Notably, the recent ruling in the Epic Games lawsuit against Apple has not yet demonstrated any adverse impact on this growth trajectory.

According to data from Sensor Tower, during the first 20 days of July, the App Store's U.S. revenue surged by 12.5% year-over-year, further improving from June's 11.5% growth rate. While the Chinese market recorded a 7.1% growth, Japan experienced a 1.9% decline, and other global regions achieved an impressive 21% year-over-year rise.

Eric Woodring, leading a team of analysts at Morgan Stanley, noted in a Tuesday report that if July 20th were considered the end of the third fiscal quarter, the App Store's net revenue growth year-over-year would reach 12.6%. This figure exceeds their previous forecast of 11.0% by 210 basis points, potentially adding 60 basis points (approximately $160 million) to their predicted 11.7% growth rate for the September quarter's service revenue.

Importantly, investment analysts have observed that despite the judgment in the Epic Games vs. Apple case, the App Store's revenue continues to rise. Woodring commented, "Even though over two months have passed since the Apple-Epic ban announcement, and despite the risks associated with external payment links, we have not observed any substantial impact on Apple's monetization capabilities within the U.S. App Store."

Anticipation surrounds Apple's upcoming announcement of its third-quarter financial results for fiscal year 2025 on July 31. The market widely expects revenue figures to reach $88.89 billion, with earnings per share projected at $1.43.