Apple May Increase Revenue by Doing Something New With Third-Party AI Apps, TechCrunch Reports

AI Offers Possible Revenue Paths

Apple’s services business remains at record levels, but its growth faces pressure from regulatory changes affecting the App Store and a slowdown in mobile gaming. On Monday’s earnings call, the company pointed to third-party apps as one possible route to more services revenue.

CFO Kevan Parekh said Apple sees potential in third-party apps and partnerships, alongside opportunities within its own products. He also said AI could encourage customers to upgrade or switch devices, but did not specify how third-party apps might contribute to revenue.

App Store Revenue Faces Pressure

Reuters reported that investors are considering whether Apple might distribute third-party AI agents through the App Store and take a share of the revenue they generate. Apple has not confirmed that approach.

Legal and regulatory changes have reduced App Store commission revenue in some markets. Third-party estimates in August indicated an 18% decline in U.S. commission revenue, with drops also reported in Brazil and Japan after new regulations.

Legal Changes And Gaming Headwinds

Apple has traditionally controlled payments in its app marketplace and collected a portion of App Store transactions. A lawsuit brought by Epic Games led to a requirement that the company allow apps to direct users to external payment systems, while other legal challenges have also affected the business.

Parekh said App Store performance in the September quarter was similar to the prior year. He also noted record paid subscriptions and double-digit growth for third-party apps, while saying mobile gaming headwinds were expected to continue into the summer quarter.

December Growth Outlook

Parekh said Apple expects services growth of 8% to 9% in the December quarter. He said the forecast accounts for estimated sequential headwinds, mainly from third-party licensing and an additional half percentage point of foreign exchange. TechCrunch said it had contacted Apple for more information and would update its story if the company responded.