EU's new rules had limited impact, Apple's (AAPL.US) App Store revenue grew 12% YoY in August
1min read Despite challenges in some regions of the world, Apple's App Store revenue grew 12% in August.
Analysts Amit Daryanani and Mark Mahaney of Evercore ISI said in a Tuesday investor note: "Steadier growth in China and Japan in recent months has driven strong App Store growth, likely aided by some new game launches. Notably, App Store revenue in Europe grew 25% YoY and 4% MoM in August, despite the DMA requirements for App Store adjustments."
Apple made several changes to its App Store operations in European countries last month to comply with the digital market act.
Evercore said that if the App Store maintains this growth trajectory, Apple's services revenue would meet its 11% to 14% growth target.
Daryanani noted: "App Store and Google Pay are likely the two largest components of the services business, so as long as these two don't see an unexpected slowdown, the faster-growing new services should be enough to keep double-digit growth and possibly move from the low teens."
Regionally, App Store revenue in the U.S. grew 15% YoY in August, 9% in China, 17% in the U.K., and 13% in Canada, according to Evercore. Japan and Taiwan saw 3% and 4% YoY declines, respectively.
The App Store's growth in the month was largely driven by entertainment apps, which grew 32% YoY.
Evercore maintained its "outperform" rating on Apple with a target price of $250. In the past year, Apple's stock has traded between $164 and $237, up about 16%.