Here's How Morgan Stanley Saw Apple's March App Store Growth

Apple Inc's AAPL App Store saw an acceleration in net revenue growth in March, up 7% year-over-year, below the firm's estimates, Morgan Stanley said.
Analyst Katy Huberty, who had an Overweight on Apple with a $210 price target (18% upside), estimated that growth would come in at 15% Y/Y, with total Services growth at 20%.
Huberty also noted that most of the slowing growth came from Japan, which declined 9% Y/Y, China, which fell 1%, and the U.S., which rose 11%.
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The rest of the App Store collective grew 16% Y/Y in the March quarter, compared to 21% growth in the December quarter.
Gaming was the only category to show a Y/Y decline, while entertainment saw net revenue growth of 30%.
Huberty added that the weakness in the App Store would be "more than offset" by better-than-expected iPhone shipment strength.
Price Action: AAPL shares traded lower by 1.09% at $176.49 on the last check Tuesday.