Morgan Stanley: App Store growth has hit a six-month high in January

The App Store and the Mac both kicked off 2021 with a bang.

What you need to know

• Morgan Stanley analyst Katy Hubery says App Store growth reached a six-month high in January 2021.
• The analyst also notes high performance from the Mac.

As reported by AppleInsider, a new investor note from Morgan Stanley lead analyst Katy Huberty highlights performance on the App Store,

Overall growth for the App Store reached 35% year over year in January 2021, with the United States reaching 42% and Japan and Germany even reaching 60%.

For one, Huberty notes that App Store growth reached a six-month high in January 2021. That's according to new data from analytics firm Sensor Tower, which indicates that App Store net revenue grew 35% year-over-year in January. That 35% growth represents a four-point acceleration from the fourth quarter of 2020, and is seven points ahead of Morgan Stanley's own Q1 2021 growth forecast. Huberty highlights Japan and Germany, where App Store growth reached 60%. In the U.S., the App Store's largest market, growth reached 42% year-over-year. The analyst says that's in line with growth during the height of the coronavirus pandemic.

Huberty also notes that lead times for the Mac are catching up to demand, a good sign as the reason for the decrease is due to Apple ramping up production.

For Apple's Mac, lead times actually appear to be moderating. Huberty notes that supply appears to be catching up to demand, with lead times clocking in at five days on average. That's compared to eight days in January 2021, and 15 days exiting the December quarter.

Earlier this month, Apple announced a record-breaking $111 billion for the first quarter of 2021. Both services and the Mac had record-breaking performances in that quarter as well.

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