Apple Floats Third-Party AI Apps as Next Services Revenue Engine

Apple's services business is hunting for new revenue in third-party AI apps — but the company won't say how. On Monday's earnings call, CFO Kevan Parekh pointed to "opportunities across third-party apps and partnerships" when asked how AI could "contribute to revenue growth over time."

Parekh did not elaborate. Reuters reported Monday that investors are asking whether Apple could profit by distributing third-party AI agents through the App Store and taking a cut of the revenue they generate.

The timing isn't accidental. Apple's services segment sits at record levels, yet its centerpiece, the App Store, faces regulatory pressure and a slump in mobile gaming that have hurt services growth.

How much is the App Store bleeding?

The numbers are concrete. Third-party estimates from August suggested Apple had seen an 18% drop in U.S. commission revenue, with declines also in Brazil and Japan after those countries introduced new regulations.

The legal picture compounds the problem. Apple has traditionally controlled payments within its app marketplace tightly, taking a cut of all App Store transactions. A lawsuit by Epic Games ultimately forced the company to allow apps to redirect users to outside payment systems. Other legal challenges throughout the world have further hampered the business.

Against that backdrop, Parekh used the call to argue the services business can expand into new territory — with AI as a possible lever.

What did Parekh actually say?

His quote on AI carried the fullest picture of Apple's thinking.

"On the product side, you know, we feel AI offers a compelling reason for customers to upgrade and switch in order to get the latest capabilities, and we also feel there's opportunities across third-party apps and partnerships as well as first-party opportunities," Parekh said.

He paired that pitch with a candid read on the App Store's struggles.

"We've also seen some factors that impacted the performance of the App Store, and during the September quarter, the performance on the App Store was similar to the prior year, and we had a record number of paid subscriptions with double-digit growth for third-party apps on the App Store," Parekh said. "At the same time, we did see some headwinds in mobile gaming that we've talked about before, and expect to see those continue into the summer quarter."

What's the December-quarter outlook?

Parekh guided to a slowdown. He expects services growth of 8% to 9% in the December quarter, a deceleration he tied to specific, named pressures.

"As we move ahead, we expect services growth 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 said.

The math matters for a business Apple counts among its most important. Record paid subscriptions and double-digit growth in third-party app revenue show the App Store isn't collapsing — flat September-quarter performance and an 8-to-9% growth guide show it's no longer the engine it was.

Why third-party AI agents fit the model

A distribution-and-commission play for AI agents would mirror the structure Apple has run for years: control the storefront, take a cut of every transaction. Regulatory rulings in the U.S., Brazil and Japan have chipped away at exactly that structure, which makes a new category of high-engagement apps commercially attractive.

For now, the strategy exists mostly as a question. TechCrunch has reached out to Apple for more information and will update the story if the company responds. Until Apple names partners, products or a revenue split, investors are left pricing in a hint — one that suggests Apple sees AI apps, not mobile gaming, as the App Store's next commission base.