Apple Services: Temporary App Store Softness Amid Resilient Ecosystem Supports Buy Rating

J.P. Morgan analyst Samik Chatterjee has maintained their bullish stance on AAPL stock, giving a Buy rating today.

Samik Chatterjee has given his Buy rating due to a combination of factors that extend beyond the short-term softness in App Store metrics. While the latest Sensor Tower data show quarter-over-quarter App Store revenue declining slightly and growing year-over-year at a slower pace than in the prior quarter, he views this as a modest disappointment relative to Apple’s broader Services growth outlook rather than a structural concern. The divergence between App Store trends and management’s guidance for overall Services suggests some downside risk to near-term Services results, but this is occurring against the backdrop of a still-growing revenue base and a diversified Services portfolio.

At the same time, App Store downloads have held up somewhat better than typical seasonal patterns, indicating that user engagement within the ecosystem remains solid even as monetization growth moderates. Chatterjee appears to weigh the temporary deceleration in App Store revenue against Apple’s larger Services strategy, installed base strength, and the resilience of its ecosystem economics. On balance, he sees the weaker-than-seasonal quarter as a manageable headwind within a fundamentally attractive Services trajectory, supporting his positive view on Apple’s long-term earnings power. This leads him to maintain a Buy recommendation, as he believes the company’s broader growth drivers can offset modest near-term risk to Services guidance.

According to TipRanks, Chatterjee is a top 100 analyst with an average return of 25.3% and a 68.15% success rate. Chatterjee covers the Technology sector, focusing on stocks such as Apple, Dell Technologies, and Amphenol.

In another report released today, Goldman Sachs also maintained a Buy rating on the stock with a $320.00 price target.