Apple (AAPL) December App Store net revenue shows continuous strength, according to Citi analysts in a research note Wednesday.
Analysts, who have a Buy rating and $230 price target on Apple shares (NASDAQ:AAPL), stated that Sensor Tower App Store net revenue for December 2023 shows a fourth consecutive month of 10% or more year-on-year growth, with the US at +8% and China at +10%, showing continuous strength for Apple's Services business.
"Gaming remains the largest contributor with 50%+ share and +5% growth y/y, while Productivity, the 7th contributor, sees the highest growth of +51%," the analysts wrote. "Looking at Q4 2023, App Store revenue grew +10% y/y with Gaming grew +6%."
The analysts noted that with one less week in the December quarter, Apple guided total Services average revenue per week to grow at a similar double-digit rate as the September quarter.
"We model Services for the Dec quarter +11% vs street consensus +12%. We also note that the import ban on smartwatches has been temporarily lifted and we await the U.S. Customs and Border Protection decision on the redesigned version on Jan 12," the analysts concluded.