Apple may look to third-party apps as one way to support growth in its services business, although the company has not explained what those opportunities would involve. On Monday’s earnings call, CFO Kevan Parekh said artificial intelligence could contribute to revenue growth over time, including through third-party apps and partnerships as well as Apple’s own products and services.
Parekh said AI could give customers a reason to upgrade or switch devices to access new capabilities. He offered no specifics on the potential third-party opportunities. Reuters reported that investors are considering whether Apple could distribute third-party AI agents through the App Store and earn a share of the revenue, but the company has not confirmed that approach.
Apple’s services business remains at record levels, but its App Store faces pressure from regulation and weaker mobile gaming performance. Changes to laws and court rulings have also limited Apple’s control over some in-app payments and reduced commission revenue in certain markets. Third-party estimates published in August pointed to an 18% decline in U.S. commission revenue, with drops also reported in Brazil and Japan.
Parekh said App Store performance in the September quarter was similar to the previous year, while paid subscriptions reached a record and third-party apps saw double-digit growth. He also noted continuing headwinds in mobile gaming.
For the December quarter, Apple expects services revenue growth of 8% to 9%. Parekh said that outlook accounts for estimated sequential headwinds, mainly from third-party licensing and an additional half-percentage-point foreign exchange impact.
Sources: TechCrunch.