Apple’s CFO hints at AI app revenue but won’t say how

Apple’s chief financial officer, Kevan Parekh, told investors on Monday’s earnings call that AI offers “opportunities across third-party apps and partnerships” to lift revenue, according to TechCrunch. He did not say what those opportunities are.

A hint with no product attached

TechCrunch reports that Parekh was asked how AI could contribute to revenue growth over time. On the product side, he said, AI gives customers a reason to upgrade and switch to get the latest capabilities. He then added third-party apps and partnerships, alongside first-party opportunities, without elaborating. TechCrunch says it asked Apple for more information and will update its story if the company replies.

Reuters reported on Monday, as relayed by TechCrunch, that investors are wondering whether Apple could distribute third-party AI agents through the App Store and take a cut of the revenue they generate. That is investor speculation. Apple has not said it plans anything of the kind.

An App Store under pressure

The App Store is the core of Apple’s services business, which TechCrunch describes as still at record levels but facing growing pressure. Regulation and a slump in mobile gaming have hurt services growth. Outside estimates from August, as the outlet cites them, put the fall in U.S. commission income at 18%, and said Brazil and Japan also slipped once new rules took effect in those countries.

Apple has long kept tight control over payments in its marketplace and collected a share of each transaction. A lawsuit by Epic Games ultimately forced it to let apps send users to outside payment systems, and other legal challenges around the world have added to the strain.

Parekh said App Store performance in the September quarter was similar to the prior year, with a record number of paid subscriptions and double-digit growth for third-party apps. He said headwinds in mobile gaming should continue into the summer quarter. For the December quarter, he guided to services growth of 8 to 9%, citing sequential headwinds mainly from third-party licensing and an additional half percentage point of foreign exchange impact.

Signals that would show the hint is real

The remark matters because it suggests where Apple may look for new services income as commission revenue from games and payments faces pressure. Whether it would charge anything on AI agents, and how, is not established by anything public. The words of one executive on a call are too general to plan around, and Apple’s current App Store terms have not changed.

• App Store rule or fee changes. Any commission on AI agents would need a policy, and developers would see it first.
• Named partners. Parekh used the word “partnerships”. An announced deal would show what he meant.
• The next quarterly results. They will show whether services growth holds near the guided range and whether any new revenue offsets the headwinds he listed.

The question of whether AI products can earn as much as the businesses they sit beside is not unique to Apple. Our report on Google’s AI Mode earning less per query covers the same tension in search.

This report rests on TechCrunch’s coverage of the call. The Parekh quotes and the Reuters detail come from that article, and we have not independently verified them.