Goldman Sachs Group, Inc.: Apple Inc. (AAPL.US) App Store average performance in January and February in line with trends. Q2 service revenue expected to meet guidance.

Goldman Sachs Group, Inc. released a research report stating that according to SensorTower data, the revenue of Apple Inc.'s (AAPL.US) AppStore in February decreased by 10.0% compared to the previous month (an increase of 2.7% in January). Historically, the average month-on-month decline from January to February is 7.2%. This resulted in a narrowing of the year-on-year revenue growth to 8.6% in February, compared to 17.6% in January. At the same time, the number of downloads on the AppStore in February decreased by 13.3% compared to the previous month (an increase of 2.6% in January). Historically, the average month-on-month decline from January to February is -9.7%. The number of downloads in February increased by 1.8% year-on-year (an increase of 6.1% in January). Although the latest trends in AppStore revenue and downloads in February are below seasonal levels, it is worth noting that this follows a strong performance in January. Therefore, Goldman Sachs Group, Inc. believes that the overall data from the past two months largely support Apple Inc.'s recent guidance, which is that the service business will grow year-on-year in the low double digits for the second quarter of the fiscal year 2025 (ending at the end of March). However, this depends on whether the performance in March is consistent with seasonal levels, which is something to keep an eye on.