(Reuters) – Apple Inc will likely see a surge in services revenue in the third quarter, charged by app store developer revenue and renewed growth in China, critical areas for the future as the iPhone maker faces a maturing smartphone market, Evercore ISI said on Tuesday.
Rosenblatt Securities on Monday downgraded Apple shares to “sell” from “neutral”, citing the probability of disappointing new iPhone sales.
Apple - Services - Business - Evercore - App
With Apple focusing more on the services business, Evercore said it expects total App Store developer revenue to grow 18% to about $9 billion in the third quarter. Apple is due to report results on July 30.
“We think there is likely upside ahead when it comes to services revenues in the June-quarter, driven by a sizable acceleration in China-centric markets,” analyst Amit Daryanani said in a note.
China - Market - Apple - Production - Center
China is a key market for Apple as well as a major production center for its devices. The company earned nearly 18% of its total revenue from Greater China...
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