Apple CFO says AI can drive upgrades, eyes third-party AI app revenue

On Monday local time (November 3), Apple CFO Kevan Parekh said on the earnings call that AI can give users a compelling reason to upgrade their devices or switch to Apple products in order to use the latest features. He added that growth opportunities exist across third-party apps, partnership projects, and Apple's own businesses, though he did not elaborate on what specific opportunities third-party apps could unlock. Reuters reported Monday that investors are speculating whether Apple will distribute third-party AI agents through the App Store and take a revenue share. The backdrop is a services segment that is still generating record revenue but facing mounting pressure: the App Store is being hit by regulatory pressure and a slump in the mobile gaming market. New rules and court decisions in multiple jurisdictions have already squeezed commission income, with one third-party estimate in August putting the decline in US commission revenue at 18%, while Brazil and Japan saw local commission income fall after new rules took effect. As of now, the matter remains at the stage of Apple signaling intent and outside speculation, with no clear answer on the specific direction.