Apple's Paradox

Despite the challenges in developing its own AI model, Apple still generated nearly $1 billion in revenue from AI applications on the App Store.

Some AI applications on the iPhone. Photo: Bloomberg .

According to analytics firm AppMagic , AI-generated applications will generate nearly $900 million in service fees for Apple in 2025. The Wall Street Journal notes this is a significant figure given the company's challenges in developing its own AI model.

Although the Siri chatbot is still weak compared to current standards, Apple still holds a significant advantage as the iPhone manufacturer. This revenue comes from App Store fees, paid by companies such as OpenAI, Google, Anthropic, and xAI.

AI revenue is soaring.

When iPhone users subscribe to AI services, companies typically give Apple 30% of the transaction fees in the first year, and 15% in subsequent years, although the percentage may vary by country.

Data from AppMagic shows that three-quarters of the revenue Apple earns from AI apps on the App Store comes from ChatGPT, while xAI's Grok accounts for about 5%.

In January 2025, revenue from AI-generated apps on the App Store went to Apple at only about $35 million , but it surged to $101 million in August. This figure decreased slightly towards the end of the year, partly due to lower downloads of ChatGPT.

Monthly revenue generated by AI apps on the App Store and transaction fees collected by Apple, 2023-2026. Image: WSJ .

According to the WSJ , $1 billion isn't a huge amount when considering Apple's overall revenue. However, it's still a positive sign for the services segment, a division that has attracted investor attention in recent years due to its significant growth potential and high profit margins.

Apps can avoid paying Apple fees by directing users to external payment gateways, although subscription fees and offers will vary by market.

According to WSJ 's testing, ChatGPT allows users to subscribe via its website, but without any discount offers.

Differentiation strategy

From Apple's perspective, its AI generative strategy has its own advantages. Instead of investing hundreds of billions of dollars in chips and data centers, Apple uses less money, leveraging personal information on iPhones and its own developed chips to run AI directly on the device.

Researchers suggest that this strategy could succeed if AI-powered models become the primary way for users to access technology, possibly due to data and privacy concerns.

Charles Rinehart, chief investment officer of Johnson Asset Management, wants Apple to demonstrate the effectiveness of its AI strategy. Unlike its competitors, Apple does not have a cloud business to sell off surplus resources, in case it spends too much on data centers.

"If Apple acts as an intermediary, collecting fees from AI companies, it could gain a long-term advantage by not having to bear the large investment costs," Rinehart emphasized.

Apple is struggling to develop a new version of Siri. Currently, the assistant on iPhones still uses outdated technology, capable of performing basic tasks like setting alarms, but unable to remember conversational content. The assistant also lacks the in-depth research and content creation capabilities of ChatGPT or other modern chatbots.

Apple Intelligence advertisements at Apple stores. Photo: Bloomberg .

In January, Apple and Google confirmed that the new version of Siri would use Gemini technology. Currently, some features of Apple Intelligence work thanks to ChatGPT.

On OpenAI's part, the company is looking for new opportunities by developing its own hardware. They acquired a hardware startup co-founded by "Apple design legend" Jony Ive. Several Apple employees also left the company to join the project.

According to the WSJ , Elon Musk also intends to produce smartphones, although he confirmed on X that he "is not developing a phone."

Google owns the Android mobile operating system. The company's Pixel smartphone line is equipped with many AI features, considered superior to Apple's. However, that's not enough to convince iPhone users to switch.

OpenAI has also attempted to create its own application ecosystem within ChatGPT, but most have yet to demonstrate superior performance compared to smartphone applications.

Source: https://znews.vn/nghich-ly-voi-apple-post1636568.html