Bank of America revamps Apple stock price target after earnings

ChatGPT went from generating astir $10 cardinal a period connected Apple's App Store successful Jan. 2024 to more than $275 million successful July 2026.

Apple did not physique ChatGPT. It does not bid it, tally it, oregon marketplace it. But each clip idiosyncratic subscribes, Apple collects a commission.

That dynamic is playing retired crossed Claude, Gemini, Grok, and each different AI app that charges users done the App Store.

A Bank of America note, published Aug. 5 and shared with TheStreet, looks astatine what that means for Apple's Services concern and what the latest App Store information says astir wherever the institution sits successful the AI landscape.

The enactment includes a information constituent that does not get capable attention: The per-user gross number, not the download count, is the 1 telling the existent communicative close now.

Apple App Store gross grows adjacent arsenic planetary downloads fall

Bank of America expert Wamsi Mohan reiterated his Buy rating connected Apple and kept his $380 terms target unchanged. Apple closed astatine $309.38 connected Aug. 5, making that people astir 23% supra the existent price.

The valuation is based connected 37 times his calendar 2027 EPS estimation of $10.32, according to Investing.com.

Mohan's analysis, based connected Sensor Tower data, puts Apple App Store gross astatine astir $3.40 cardinal for the archetypal 35 days of fiscal 4th fourth 2026. That is simply a 0.6% year-over-year increase, compared with $3.38 cardinal successful the aforesaid 35-day play a twelvemonth earlier.

Related: Morgan Stanley sends cautious Apple banal connection aft earnings

Downloads went the different way. Global App Store downloads fell 4.0% twelvemonth implicit twelvemonth to astir 3.34 billion. The archetypal antagonistic download maturation since April 2024.

Average gross per download roseate 4.7% twelvemonth implicit twelvemonth to $1.02. Users are spending much wrong the ecosystem adjacent arsenic less caller users are coming in.

Apple's Services concern runs connected recurring spending from existing users, not caller download counts. That makes the per-download gross fig the much applicable fig for investors.

China held up. Downloads fell 6.8% twelvemonth implicit year, but App Store gross roseate 8.7%, the 5th consecutive period of gross maturation successful the market. EU App Store gross besides roseate 9% twelvemonth implicit twelvemonth successful July.

ChatGPT deed $275M connected Apple's App Store arsenic Claude accelerates

Google's standalone Search app held 88% of DAU stock among tracked apps successful January 2025. By July 31, 2026, that fig had dropped to 73%. AI-powered alternatives took the rest.

ChatGPT generated much than $275 cardinal successful monthly App Store gross successful July 2026. In January 2024, that fig was astir $10 million. Claude produced astir $65 cardinal successful July. Claude's monthly gross has grown each period since March 2026.