Apple's Services Business Continues to Grow Amid AI-Powered Ecosystem
Bank of America analyst Wamsi Mohan has reaffirmed his Buy rating on Apple and kept his $380 price target unchanged, which is approximately 23% above the current stock price of $309.38.
The note highlights that the per-user revenue number, not the download count, is the key metric in understanding Apple's Services business growth.
According to Sensor Tower data, Apple App Store revenue for the first 35 days of fiscal fourth quarter 2026 was approximately $3.40 billion, a 0.6% year-over-year increase compared to $3.38 billion in the same period last year.
However, global App Store downloads fell 4.0% year over year to roughly 3.34 billion, marking the first negative download growth since April 2024.
The average revenue per download rose 4.7% year over year to $1.02, indicating that users are spending more inside the ecosystem despite fewer new users coming in.
Apple's Services business relies on recurring spending from existing users, making the per-download revenue figure a more relevant metric for investors.