Investors Should Worry About Apple’s (AAPL) Decelerating App Store Growth, Says UBS
TipRanks
Last updated: June 5, 2026
UBS analysts are raising concerns about Apple's decelerating App Store revenue growth, which could impact the future performance of its Services business. This observation follows a notable slowdown in App Store growth in May, particularly in the U.S. market.
- UBS analysts have identified that Apple's App Store revenue growth slowed to the low single digits in May, with overall growth around 3%, significantly slower than April. This deceleration is partly attributed to a 7% decline in U.S. App Store revenue.
- Furthermore, revenue growth related to generative AI within the App Store has also slowed considerably, falling from 190% year-over-year in January to approximately 94% in May. UBS anticipates limited upside from the App Store for the remainder of the year.
- Despite these App Store concerns, UBS has maintained its Services segment growth forecast at 14% for the year and a $296 price target for Apple stock, rating it as a Hold.
- The broader Wall Street consensus among 29 analysts is a Moderate Buy for Apple stock, with an average price target of $320.83, suggesting a slight potential upside.
