Apple Eyes Third-Party App Revenue as Commissions Slip
Apple signaled it may lean on third-party apps for services revenue as regulatory and legal changes weigh on App Store commissions.
Updated on Nov. 3, 2026 in Financial Services
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Apple said its services business remains at record levels even as App Store commission revenue has declined in some markets. Third-party estimates in August suggested an 18% drop in U.S. App Store commission revenue.
Why it matters
Apple has traditionally controlled payments within its app marketplace and taken a cut of transactions, so regulatory and legal changes that let apps redirect users to outside payment systems directly reduce that income. The shift matters for developers and for investors tracking how dependent Apple's services growth is on its App Store take.
Third-party estimates put the drop in U.S. App Store commission revenue at 18% in August, while Apple projects services growth of 8 to 9% for the December quarter. The company did not say how much of that growth it expects to come from third-party apps.
The players
Apple
Apple is the technology company that operates the App Store and reports services revenue as a core part of its business.
Kevan Parekh
Kevan Parekh is Apple's chief financial officer, who spoke about the company's services outlook on the earnings call.
Epic Games
Epic Games is the video game developer whose lawsuit against Apple forced the company to allow apps to redirect users to outside payment systems.
The details
On Monday's earnings call, Apple CFO Kevan Parekh signaled the company may boost services revenue through third-party apps. App Store commission revenue declined in Brazil and Japan after those countries introduced new regulations, and a lawsuit by Epic Games forced Apple to allow apps to redirect users to outside payment systems. Apple reported a record number of paid subscriptions and double-digit growth for third-party apps, even as it saw headwinds in mobile gaming during the September quarter.
Timeline
August: Third-party estimates showed an 18% drop in U.S. App Store commission revenue.
September quarter: App Store performance was similar to the prior year, with record paid subscriptions.
Monday: Apple signaled third-party app revenue opportunities on its earnings call.
December quarter: Apple projects services growth of 8 to 9%.
Market Landscape
Epic Games' lawsuit forced Apple to let apps redirect users to outside payment systems, a change that has now shown up as lost App Store commission revenue. Apple is responding by leaning harder on third-party app growth and subscriptions to keep its services business expanding.
Developers who sell digital goods may have more freedom to direct customers to outside payment options, which could change how subscriptions are priced. Consumers may see different checkout experiences depending on which payment route an app offers.
The takeaway
App developers and subscribers are likely to see the payment landscape keep shifting as regulators and courts loosen Apple's control over in-app transactions. Watching how subscription growth offsets lost commissions will show whether Apple's services model holds up under that pressure.
What happens next
Apple expects services growth of 8 to 9% in the December quarter and expects mobile gaming headwinds to continue into the summer quarter.
Further reading
For more on how payment rules are reshaping revenue across the sector, browse Financial Services coverage.
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