From Nasdaq: 2024-06-10 18:37:00

Apple (NASDAQ: AAPL) saw a 4% drop in total revenue with a 10% decline in iPhone sales in its most recent quarter. On a positive note, service revenue, including the App Store and Apple TV, rose 14%, showing momentum. An analyst reported that App Store revenue is up 11% this quarter.

Data from Sensor Tower revealed that European App Store revenue increased by 25% in the past 90 days with minimal changes in consumer behavior after EU regulations. App Store revenue in China grew by 12% in May, led by entertainment apps. Third-party data shows iPhone demand stabilizing in China ahead of the 618 shopping holiday.

Apple’s service revenue gross margin is higher than product sales, offering profitability stability. With App Store risks lowering and China stabilizing, now may be a good time to invest in Apple. The company’s approach to AI technology integration and potential hardware upgrades could drive future growth.

The Motley Fool Stock Advisor named Apple as one of the best stocks to buy, projecting potential strong returns. While not an immediate bargain with a 30 times forward P/E multiple, Apple’s performance and potential in the AI sector make it a solid long-term investment option.



Read more at Nasdaq: Analyst Sees Apple App Store Revenue Up Double Digits So Far This Quarter. Is the Stock Poised to Rally?