UBS analysts said in a note Thursday that Apple's (NASDAQ:AAPL) March quarter App Store revenue was in line with their Services estimate for the quarter.
The investment bank stated that App Store revenue was up 12% year-on-year, with spending ticking up modestly in March compared to February, which is supportive of UBS's Services forecast.
"Our analysis of Apple's App Store suggests revenue in the month of Mar was up ~13% YoY, a 200 bps increase from the ~11% growth in February (Source: Sensor Tower)," said UBS, which has a Neutral rating on the stock.
They added, "Solid App Store results in March bring the quarter to 11.6%, in line with our 11.6% Services estimate."
However, UBS cautioned that while the March quarter data is encouraging, they note that the June-23 comparison is almost 500 bps more difficult on a year-over-year basis relative to March.
"In addition, in the Sept-23 quarter last year, we estimate App Store revenue was up ~12%, an even more challenging comp and a key reason we forecast 'Services' revenue growth to decelerate to ~10% in the June and Sept quarters," stated UBS.