Apple's services hit record but faces pressure

Apple's services business remains at record levels but faces growing pressure. The App Store, central to services, has suffered from regulatory pressure and a slump in mobile gaming that hurt growth.

CFO hints at third-party AI opportunity

On Monday's earnings call, Apple's chief financial officer Kevan Parekh said AI offers opportunities across third-party apps and partnerships to contribute to revenue growth over time.

“opportunities across third-party apps and partnerships as well as first-party opportunities”

But Parekh won't explain what that means

Parekh did not elaborate on what sorts of opportunities might be available via third-party apps, leaving investors to guess at Apple's plans.

Investors think Apple could take a cut of AI revenue

Reuters reported Monday that investors are wondering whether Apple could profit by distributing third-party AI agents through the App Store and taking a cut of the revenue they generate.

Regulations have already hurt App Store commissions

Regulatory and legal changes have cut into App Store commission revenue. Third-party estimates in August suggested Apple saw an eighteen percent drop in U.S. commission revenue, with declines also in Brazil and Japan.

Epic Games lawsuit forced Apple to allow alternatives

A lawsuit by Epic Games ultimately forced Apple to allow apps to redirect users to outside payment systems. Other legal challenges throughout the world have further hampered the business.

Apple expects modest services growth ahead

Apple expects services growth to be between eight to nine percent in the December quarter, with headwinds from third-party licensing and foreign exchange pressures continuing.