Morgan Stanley analyst Katy Huberty said that Apple’s App Store revenue growth (NASDAQ: App Store Net Revenue Growth) likely rose by 8% YoY during April. This was mainly due to China Gaming.

App Store sales grew by 6% YoY during Q1. The analyst reiterated her 15% YoY estimation for Q2, which would see App Store revenues reach $7.2 billion in the June quarter.

“While the acceleration in growth is slightly weaker than we expected given the easing Y/Y compares, we see green shoots emerging in important markets and regions. For example, App Store net revenue growth in China, which accounts for 26% of total T12M App Store spend, accelerated from +1% Y/Y in C1Q to +11% Y/Y in April despite an 4 point more challenging Y/Y compare, likely aided by renewed COVID lockdowns in major metropolitan cities,” Huberty said in a client note.

Not only China but also countries like Japan (the 3rd- and 7th biggest markets respectively for App Store) saw improvements.

Furthermore, the net revenue from China gambling likely increased by 6% Y/Y during April. This is an 18% acceleration over March’s declines of 12%.

Huberty anticipates that App Store growth will continue to accelerate through the year, even beyond the June quarter.

“With the health of the consumer, and the potential shifting nature of consumers spending patterns, a notable debate entering the summer months, an acceleration in App Store growth should help to dispel the bear concern of a more permanent App Store slowdown,” the analyst concluded.

By Senad Karaahmetovic