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

Policy1 min read

Apple says it may grow its services business by using AI and third-party apps. It did not explain how, so the plan is still unclear.

Apple hints at a new way to earn money

On its latest earnings call, Apple said AI could help bring in more revenue over time. Its finance chief said AI gives people a reason to upgrade their devices. He also mentioned chances to earn through third-party apps, but he gave no details.

Key numbers

  • Third-party estimates in August suggested a drop of about 18% in Apple's U.S. App Store commission revenue.
  • Commission revenue also fell in Brazil and Japan after new rules there.
  • Apple expects services growth of 8% to 9% in the December quarter.
  • Paid subscriptions hit a record, with double-digit growth for third-party apps.

Why the App Store is under pressure

Apple has long controlled payments in its App Store and taken a cut of purchases. A lawsuit by Epic Games forced Apple to let apps send users to outside payment systems. Other legal cases and new rules in several countries have also cut into this income. Mobile gaming has also slowed down.

Why it matters

The App Store is a big part of Apple's services business, which still sets new records. If Apple finds a new way to earn from AI apps, it could make up for lost App Store income. Investors are watching closely, but the company has not yet said what it plans to do.

What to watch

  • Whether Apple explains how it will earn from third-party AI agents.
  • How much App Store commission revenue keeps falling in the U.S., Brazil, and Japan.
  • Whether mobile gaming slows further, as Apple expects.
  • Whether Apple meets its 8% to 9% services growth target for the December quarter.

Glossary

App Store
Apple's online store where people buy and download apps for iPhones and other Apple devices.
Commission
A fee, usually a share of each sale, that Apple takes from app purchases made in the App Store.
Epic Games
The company behind the game Fortnite, which sued Apple over App Store payment rules.
AI agents
Computer programs that can carry out tasks for a user on their own, often using artificial intelligence.

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