morgan stanley china app store pop
3 years ago
Published August 7, 2019 by

Morgan Stanley: Apple's Chinese App Store popped in July

In retrospect, says analyst Katy Huberty, June's sharp slowdown was a blip, not a trend.

Last month, Huberty drew our attention to a sharp drop in Chinese App Store revenue growth at the end of the June quarter—from May's plus 18.9% to June's 4.7%.—a drop she attributed to trade war tensions.

Now she's changed her tune.

In a note to clients that landed on my desktop Wednesday, Huberty published the chart below showing a 15% pop in App Store growth. The real reason for June's slowdown, she now says, was "tougher year-over-year comparisons and fewer game license approvals."

Cue the chart:

morgan stanley china app store

My take: According to Huberty, June's China numbers pulled worldwide App Store revenue growth down 4 points, from 18.2% year over year to 14.2%. She's getting her data from SensorTower. Garbage in garbage out? No offense.

2 Comments

  1. Turley Muller said:
    How is the June slowdown not related to the Yuan ? It was 6.4 a year ago June vs 6.9 June this year. That’s a double-digit move. For the July compare, the Yuan is just slightly weaker this year. Won’t be the case this month.

    2
    August 7, 2019
    • Gregg Thurman said:
      That’s the single biggest problem with most analysis. Context is never complete.

      0
      August 7, 2019

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