Investing.com — Apple (NASDAQ:)’s App Retailer income rose 14% year-over-year (y/y) in September, in accordance with a report from Financial institution of America.
The financial institution mentioned in a be aware Wednesday that the rise was pushed by sturdy world demand, with SensorTower knowledge displaying that Apple’s App Retailer income for the fourth quarter of fiscal yr 2024 (F4Q24) totaled $7.8 billion, an increase of 13.6% y/y.
In the identical interval, complete app downloads (iPhone and iPad) grew by 5.5%, reaching 8.9 billion.
“Despite being the 2nd largest category of Apps, Entertainment app rev grew +33% y/y in F4Q (according to data from SensorTower), the 3rd fastest growing category during the qtr,” mentioned BofA.
They defined that this was largely on account of well-liked apps like YouTube and TikTok, which noticed income progress of 24% and 52% y/y, respectively.
In the meantime, Gaming apps, which nonetheless dominate the App Retailer’s income, grew by 6% y/y to $3.9 billion, though they now account for 50% of complete income in comparison with 54% a yr in the past, in accordance with the financial institution.
BofA mentioned China, one among Apple’s key markets, noticed App Retailer income rise by 6% y/y in September, whereas its leisure section posted a 21.9% y/y progress. Nevertheless, gaming income in China remained flat, growing by simply 0.2%.
BofA analysts additionally famous minimal affect from the European Union’s Digital Markets Act (DMA) on App Retailer downloads, suggesting that client conduct within the area has remained largely unchanged.
The financial institution expects Apple’s companies income to keep up its progress trajectory, projecting a 14% y/y enhance for each F4Q24 and F1Q25, citing the resilience of the corporate’s companies as a long-term bullish indicator.
