Apple may boost services revenue via third-party AI apps
During a November 2, 2026 earnings call, Apple signaled potential revenue growth through third-party AI applications as App Store commissions face regulatory pressure.
Stock photo for illustration only, not from the actual event
- Apple may boost services revenue through third-party AI apps
- U.S. App Store commission revenue dropped by 18 percent
- December quarter services growth projected at 8 to 9 percent
Apple’s services business remains at record levels, yet it faces growing pressure. The central pillar of that division, the App Store, has encountered regulatory hurdles and a slump in mobile gaming, both of which have weighed down overall services growth.
However, during an earnings call on Monday, November 2, 2026, Apple signaled that it could look to elevate services revenue through third-party applications. Exactly what that entails, unfortunately, remains entirely unclear at this stage.
Stock photo for illustration only, not from the actual event
Reuters reported on Monday that investors are wondering whether Apple could profit by distributing third-party AI agents via the App Store and taking a cut of the revenue they generate. Meanwhile, regulatory and legal shifts have continued to eat into commission earnings across multiple markets.
Third-party estimates in August, for instance, indicated that the company experienced an 18 percent drop in U.S. commission revenue, alongside declines in Brazil and Japan after those nations introduced fresh regulations. Furthermore, an antitrust lawsuit brought by Epic Games ultimately compelled the company to permit apps to redirect users to alternative payment systems.
Apple's exploration of third-party artificial intelligence revenue streams highlights an essential strategic shift as traditional ecosystem gatekeeping faces legal dismantling worldwide. Finding new monetization avenues via external AI agents could help offset ongoing commission losses from forced compliance with alternative payment gateways.
During the call, Parekh referenced the ongoing App Store challenges and revisited the notion that the firm's services division could successfully expand into uncharted territory.
"As we move ahead, we expect services growth to to be between 8 to 9% [in the December quarter]. This outlook contemplates our best estimates on sequential headwinds, primarily from third-party licensing and the additional half percentage point of foreign exchange I just mentioned."
Parekh
TechCrunch has reached out to Apple to obtain further information and will update this report if a response is provided.
Source: TechCrunch
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