Apple may try to increase revenue by doing…something with third-party AI apps

Apple may start taking a cut of revenue generated by third-party AI apps sold through its App Store.

Apple is exploring new revenue streams within its services business, particularly by leveraging third-party artificial intelligence applications. During a recent earnings call, CFO Kevan Parekh indicated that while AI could drive product upgrades, there are also "opportunities across third-party apps and partnerships." This statement has led to speculation that Apple might distribute AI agents through its App Store and take a commission on their generated revenue. This potential strategy comes as Apple's App Store revenue faces pressure from regulatory changes and a decline in mobile gaming. For instance, new regulations in countries like the U.S. and Brazil have led to an estimated 18% drop in U.S. commission revenue. Despite these headwinds, Apple reported a record number of paid subscriptions for third-party apps, with double-digit growth. The company projects services growth between 8-9% for the December quarter, factoring in third-party licensing impacts.

Apple's signaling of interest in third-party AI apps suggests a strategic pivot to diversify its services revenue beyond traditional app sales and subscriptions. This move could create a new ecosystem for AI developers on the App Store, potentially leading to innovative applications and partnerships. The company's approach will likely involve navigating existing regulatory challenges around app store commissions, especially after legal battles forced it to allow alternative payment systems in some markets.

If Apple implements a revenue-sharing model for AI apps, it could significantly impact how AI developers monetize their creations and how consumers access AI services. Developers might see a new, large distribution channel with potential for substantial earnings, provided Apple's commission structure is favorable. Conversely, users could gain access to a curated selection of advanced AI tools directly within the familiar Apple ecosystem, though potentially at a higher aggregate cost.