Apple's App Store revenue growth is reaccelerating, with Morgan Stanley reporting a 9 percent year-over-year increase in February. Analyst Erik Woodring noted the 230 basis point acceleration from January represents a significant turnaround after a challenging comparison period. The bank's latest data suggests Apple's services division is gaining momentum heading into the March quarter.

The bank maintained its 8 percent growth forecast for the March quarter, stating that March revenue would need to grow 10 percent month-over-month to meet expectations. Woodring highlighted that quarter-to-date revenue is rising 7.5 percent, putting it just 50 basis points behind the forecast. The acceleration appears broad-based across major markets, with China rebounding to 4 percent growth after January's decline.

Morgan Stanley also pointed to rising Mac lead times and stronger Taiwan component supplier revenue as positive indicators for Apple's business. The analysts noted Mac demand is being driven by interest in AI tools like OpenClaw, while robust server demand from major cloud providers suggests broader tech sector strength. The bank's unchanged 13.5 percent forecast for overall Services growth reflects confidence in Apple's ability to maintain its momentum across its ecosystem.