Apple may try to increase revenue by doing…something with third-party AI apps
Apple’s services business remains at record levels, but it’s facing growing pressure. The central part of that business, Apple’s App Store, has faced regulatory pressure and a slump in mobile gaming, which have hurt services growth.
However, on Monday’s earnings call, Apple signaled that it may look to boost services revenue through third-party apps. What does that mean, exactly? Unfortunately, it’s not entirely clear.
When discussing how AI could potentially “contribute to revenue growth over time,” Kevan Parekh, Apple’s chief financial officer, said: “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 did not elaborate on what sorts of opportunities might be available via third-party apps. However, Reuters reportedMonday that investors are wondering...
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