Apple sees AI as a potential source of revenue growth

Parekh did not explain what Apple’s third-party app opportunities would involve.[2] The Verge said Apple could collect fees from subscriptions to AI apps, but that was a reported possibility rather than a model Parekh detailed on the call.[4] Separately, PYMNTS reported that customers who need greater capacity would be able to purchase expanded access in the future.[3] Apple had not announced pricing or a launch date for that expanded access, according to PYMNTS.[3] These reports point to potential ways AI services could be monetized, but the evidence does not establish that they are one unified offer.

Apple’s services revenue rose 10% to $31.6 billion in the September quarter, according to PYMNTS.[3] Parekh said App Store performance for the quarter was similar to the prior year, while the company had a record number of paid subscriptions and double-digit growth for third-party apps on the App Store.[2] TechCrunch reported that regulatory pressure and a mobile-gaming slump had hurt services growth.[2] Third-party estimates cited by TechCrunch suggested U.S. App Store commission revenue fell 18%, with declines also in Brazil and Japan after new regulations.[2] TechCrunch also reported that an Epic Games lawsuit forced Apple to allow apps to direct users to outside payment systems.[2]

Apple’s AI opportunity sits alongside limits on some features.[3] Customers needing greater capacity would be able to purchase expanded access in the future, but pricing and a launch date had not been announced, PYMNTS reported.[3] Parekh also said Apple expected mobile-gaming headwinds to continue into the summer quarter, and that the December-quarter services outlook included sequential headwinds, primarily from third-party licensing and foreign exchange.[2] Those caveats make it premature to infer the revenue impact of AI from the comments alone.