Apple Links AI Revenue Opportunity to Third-Party Apps and Partnerships

Apple Chief Financial Officer Kevan Parekh said artificial intelligence could support revenue growth through device upgrades and opportunities involving third-party apps and partnerships, but he did not explain what those opportunities would involve.

Parekh made the comments during Apple’s earnings call Monday, Nov. 2. He said AI could give customers a reason to upgrade or switch devices to get the latest capabilities. He also pointed to opportunities across third-party apps and partnerships, as well as first-party opportunities.

Apple forecast services growth of 8% to 9% in the December quarter. Parekh said the outlook accounts for sequential headwinds, primarily from third-party licensing, and an additional half-percentage-point foreign-exchange impact.

For the September quarter, App Store performance was similar to the prior year. Paid subscriptions reached a record, and third-party App Store apps had double-digit growth.

The comments followed Apple’s fiscal fourth-quarter results, which included 12% year-over-year revenue growth.