Apple may try to increase revenue by doing…something with third-party AI apps

Apple's services business has been thriving, but it's facing increased scrutiny. While the company's App Store has encountered regulatory challenges and a decline in mobile gaming, Apple's chief financial officer, Kevan Parekh, hinted at potential growth through third-party AI apps during the latest earnings call. Parekh suggested that AI could attract customers to upgrade and access the latest features, and also revealed potential partnerships and collaborations with third-party apps.

However, he didn't provide more details on how exactly this might work. Reports from Reuters suggest that investors are curious about the possibility of Apple distributing third-party AI agents via the App Store and earning a commission on their earnings. Regulatory and legal changes have impacted Apple's commission revenue in some markets, but overall, Apple's services business continues to expand.

Apple typically tightly controls payments within its app marketplace, taking a cut of all transactions. However, in 2020, a lawsuit by Epic Games forced Apple to allow apps to redirect users to external payment systems. Legal challenges in various countries have further complicated Apple's App Store business. During the earnings call, Parekh pointed to the fall in App Store performance and mentioned a record number of paid subscriptions and double-digit growth for third-party apps.

Despite these headwinds, Apple expects services growth to stay between 8 to 9% in the upcoming December quarter, taking into account the current setbacks and a half percentage point decline due to foreign exchange fluctuations. Apple has reached out to TechCrunch for further clarification, and the outlet will update this story if they respond.