Apple explores third-party AI integration to bolster App Store revenue

Apple is signaling a strategic shift in its services division as revenue growth faces mounting pressure from global regulatory changes and a stagnant mobile gaming market. During a recent earnings call, CFO Kevan Parekh indicated that the company is exploring new revenue streams through third-party applications and AI initiatives to supplement its core App Store earnings.

While Apple’s services division remains a significant revenue driver, the company’s traditional commission-based model is under strain. Legal rulings and shifting policies in markets such as the U.S., Brazil, and Japan have forced Apple to allow external payment links, leading to a measurable decline in transaction commissions. In the U.S. alone, estimates suggest commission revenue has dropped by nearly 18%.

Analysts now speculate that Apple intends to leverage the distribution of third-party AI agents via the App Store to reclaim lost margins. Parekh stated that while App Store performance remained flat in the September quarter, paid subscriptions reached record levels. However, ongoing weaknesses in the gaming sector are expected to persist through the coming months.

Looking ahead, Apple projects a 8% to 9% growth rate for its services business in the December quarter. This forecast accounts for currency fluctuations and the ongoing transition away from traditional licensing revenue models as the company seeks to integrate AI capabilities more deeply into its ecosystem.