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AppleCare has been 'underestimated' but highlights Apple's reliance on device sales, says analyst

Raymond James analyst Chris Caso took a cautious stance on Apple Inc.'s AAPL, -Zero.82% services industry Thursday, writing that the fast-growing segment is connected to tool gross sales, that have been slowing. He said that the company's AppleCare insurance product has been "underestimated" via Wall Street, however he thinks that AppleCare "underscores what we think is Apple's fundamental problem." Caso refers to his trust that "most of Apple's revenue is tied to device sales, and growth has stagnated due to rising prices, and demand hasn't been as elastic as hoped." He is cautious about App Store enlargement as neatly, as he thinks in-app gross sales will grow to be a bigger portion of the App Store's revenue as tool gross sales continue to gradual. Apple takes a smaller lower of in-app purchases than it does of app gross sales, Caso wrote. Apple stock is up Zero.three% in premarket trading Thursday and up 31% over the last 12 months. The Dow Jones Industrial Average DJIA, -Zero.47% has risen 18% in that point.