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Benzinga
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Apple Services Revenue Trajectory Signals Softness With Weaker App Store Downloads: Analyst

1. Apple's August App Store revenue grew 11.2% year-over-year. 2. Growth rates are slowing compared to historical averages. 3. JP Morgan maintains an Overweight rating for AAPL. 4. Downloads were flat month-over-month, trailing seasonal norms. 5. Current trajectory indicates softer growth outlook for AAPL's Services segment.

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FAQ

Why Neutral?

While August growth is below expectations, AAPL shows resilience. Past instances of seasonal slowdowns indicate potential recovery in future months.

How important is it?

The article highlights deceleration in key revenue growth, affecting investor sentiment and strategies. However, maintaining an Overweight rating mitigates severity of impacts.

Why Short Term?

The current data reflects immediate trends but may stabilize as new products roll out. Seasonal effects typically normalize over subsequent quarters.

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