Apple's App Store faces dual pressure from regulation and declining mobile gaming; AI and third-party apps may become new growth drivers

Apple's App Store Faces Dual Pressure from Regulation and Declining Mobile Games; AI and Third-Party Apps May Become New Growth Drivers Bianews Download the app for exclusive early access November 03, 2026 10:14:00 From Beijing Updated November 03, 2026 10:17:44

November 3 news, according to foreign media reports, Apple's services business revenue remains at historic highs, but growth is facing increasing pressure. As an important component of the services business, the App Store is affected by regulatory changes and a weak mobile gaming market, and its revenue growth has come under pressure.

However, on Monday's earnings call, Apple indicated that it may expand services revenue through third-party apps in the future. Exactly how it plans to do so is currently unclear.

Apple Chief Financial Officer Kevin Parekh, speaking about how AI could drive revenue growth in the future, said AI may prompt consumers to upgrade or replace devices in order to experience the latest features; in addition, third-party apps, partnerships, and Apple's own businesses all present development opportunities.

Parekh did not elaborate on what specific opportunities exist in the third-party app space. Reuters reported on Monday that investors are watching one possibility: whether Apple will distribute third-party AI agents through the App Store and take a commission from the revenue these products generate.

In recent years, regulatory and legal changes have already eroded Apple's App Store commission revenue in some markets. Estimates by third-party institutions in August of this year showed that Apple's related commission revenue in the United States fell 18%; after Brazil and Japan introduced new rules, related revenue also declined.

In the past, Apple strictly managed payment methods within the App Store and typically took a commission from transactions on the platform. But in its lawsuit with Epic Games, the court ultimately forced Apple to allow apps to direct users to external payment systems. Other legal challenges around the world have further pressured this business.

On the earnings call, Parekh discussed the difficulties facing the App Store and again mentioned the possibility of expanding the services business into new areas. He said that in the quarter ended September, the App Store's overall performance was roughly flat compared with the same period last year; the number of paid subscribers on the platform hit a new high, and subscription revenue from third-party apps also achieved double-digit growth.

However, the mobile gaming business still faces pressure. Parekh said this trend is expected to continue into the summer quarter.

For upcoming results, Apple expects services business growth of 8% to 9% in the December quarter. This forecast already takes into account sequential pressure, mainly from the third-party licensing business, as well as an additional half-percentage-point impact from currency factors.

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