Third Party Apple (AAPL) App Store Revenue Looks Strong Due to China - BofA Securities

BofA Securities analyst Wamsi Mohan reiterated the $135.00 price target on Apple (NASDAQ: AAPL) after third party data on publisher revenues suggests that global App Store quarter-to-date (QTD) rev in F1Q21 (till 30th Nov) was approx. $4.0bn (+30% y/y). This is in line with the +31% y/y growth in F4Q20. China revenues grew 23% y/y to $1.1bn, despite continued pressure on domestic downloads (-17% y/y) amid restrictions by Chinese authorities against unlicensed games. The key to the growth was the average sell price (ASP) per download, which was up 30% y/y, a much higher level than historically seen, with ASPs up 49% y/y in China and 25% y/y ex-China.

Despite the strength, the analyst reiterated the Neutral rating on risk-reward balance. He also commented on customer concentration stating "the top two rev generating apps come from Tencent Mobile Games and account for 5% total Store Rev ($208mn, up 38% y/y). These are Chinese-based apps, implying nearly 20% of Chinese app store revs comes from just two apps. Downloads for these apps is up 27% y/y despite the restrictions".

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $128.48 yesterday.

You May Also Be Interested In

• KeyBanc Reiterates Underweight Rating on Apple (AAPL)
• Apple opens Advanced Manufacturing Center in Houston for SMBs
• Jefferies on Five Below (FIVE): 'Our latest channel checks reinforce our view that FIVE's momentum extends well beyond viral Squish trends'