Apple hints it may make more money from third-party AI apps

In short: Apple says it sees new ways to grow its services business through third-party AI apps, but it did not explain what those plans are.

What's going on

Apple’s services business, which includes the App Store, is still bringing in record revenue. But it is under pressure because of rules and court cases that limit how much Apple can collect from app sales and payments.

On Apple’s earnings call, chief financial officer Kevan Parekh said AI could help revenue in a few ways. He said AI can push customers to buy new devices to get the latest features. He also said Apple sees “opportunities” with third-party apps and partnerships.

Apple did not say what those opportunities are. Reuters reported that investors are asking whether Apple could make money by distributing third-party AI agents through the App Store. An AI agent is a type of AI tool that can take actions for you inside an app (like a helper that can do steps on its own, not just answer questions).

This comes as Apple’s usual App Store income has taken hits in some countries. TechCrunch noted reports of an 18% drop in US commission revenue, and declines in places like Brazil and Japan after new regulations. A legal fight involving Epic Games also pushed Apple to allow apps to send users to outside payment options, which can reduce Apple’s cut.

What to watch

If Apple starts selling or promoting AI agents from other companies in the App Store, the key question will be how Apple charges for them. Watch for whether Apple takes a fee, creates a new subscription bundle, or sets new rules for AI apps.

Source: TechCrunch AI