Apple App Store is growing much faster than this top analyst predicted - Business Insider

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Apple's App Store sales have grown nearly twice as fast as this top Wall Street analyst predicted, as services are softening the blow from slowing iPhone sales

for Apple's iPhones, the company is seeing its most significant boost in Apple Store sales of recent years, according to a research note posted by Morgan Stanley.

The investment firm expects this tailwind to the app economy has been caused by sheltering-in-place around the world as a result of the COVID-19 pandemic. The firm previously predicted that App Store growth would peak in April. "However, high levels of engagement have sustained as the 'new normal' includes more time spent indoors," wrote Huberty.

This App Store boost will be good news for Apple, which is seeing its services and wearables bets pay offIn its fiscal second-quarter earnings, the Cupertino, California-headquartered company reported that iPhone revenue fell 7% compared with the year-ago quarter, but those losses were being bolstered by services such as Apple Music, Apple TV Plus, and wearables like the Apple Watch.

 

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