Apple Faces Mixed Outlook Ahead of Foldable iPhone Launch
Shares of Apple Inc. have gained nearly 20% year-to-date, outperforming the S&P 500 Index's rise of about 11.78%. However, analysts remain divided on its outlook due to recent App Store revenue declines and uncertainty around future growth drivers. App Store revenues fell for the sixth consecutive month in August with a 1% year-over-year decline overall and sharper drops in gaming and U.S.-based sales. Evercore ISI warned that continued weakness could hinder Apple's ability to achieve double-digit Services growth, though it noted faster-growing areas within its Services business are helping offset these trends. Morgan Stanley is more optimistic about the potential of Apple’s upcoming foldable iPhone launch as a new revenue driver, estimating up to $14 billion in sales for the December quarter. The firm expects strong demand but also supply constraints due to rising component costs and production challenges.
Tickers: $AAPL
Topics: Analyst Ratings App Store Revenue Apple Foldable iPhone