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BusinessQuiet 10d · day 10

Apple forecasts slower services growth as AI infrastructure costs rise

CEO John Ternus outlines plans for paid Apple Intelligence access while predicting December-quarter slowdown.

newest coverage 10d agosummary written 9d ago2 pieces NewswiresGoogle News

What to know

  • Apple services revenue hit a record $31.6B in Q3 but the company expects a significant slowdown to 8–9% growth in December, primarily due to cloud-computing costs tied to Siri AI deployment.
  • CEO Ternus announced Apple will charge users for expanded access to server-side AI features like enhanced Siri and intelligent photo editing, though pricing and rollout dates remain unclear.
  • Apple Pay expanded to India and global payments revenue set a record, but gaming weakness on the App Store is expected to persist into the December quarter.

“It's primarily request-based today, but as we talked about at WWDC, it's built on a modern orchestrated-driven architecture that gives us real room to expand its capabilities over time.”

John Ternus, Apple CEO · PYMNTS.com ↗ · Nov 1

John TernusJohn Ternus Apple CEOKevan Parekh Apple CFO

Apple forecasts slower services growth as AI infrastructure costs rise
pymnts.com

How it unfolded 1 development · click the chart to see its coverage articles

Peak 2 pieces in 3h at Nov 2, 4 PM; 2 pieces over 10 days (2 articles) Nov 2, 4 PM — 2 pieces · 2 articles — Newswires 1, Google News 1Nov 2, 7 PM — quietNov 2, 10 PM — quietNov 3, 1 AM — quietNov 3, 4 AM — quietNov 3, 7 AM — quietNov 3, 10 AM — quietNov 3, 1 PM — quietNov 3, 4 PM — quietNov 3, 7 PM — quietNov 3, 10 PM — quietNov 4, 1 AM — quietNov 4, 4 AM — quietNov 4, 7 AM — quietNov 4, 10 AM — quietNov 4, 1 PM — quietNov 4, 4 PM — quietNov 4, 7 PM — quietNov 4, 10 PM — quietNov 5, 1 AM — quietNov 5, 4 AM — quietNov 5, 7 AM — quietNov 5, 10 AM — quietNov 5, 1 PM — quietNov 5, 4 PM — quietNov 5, 7 PM — quietNov 5, 10 PM — quietNov 6, 1 AM — quietNov 6, 4 AM — quietNov 6, 7 AM — quietNov 6, 10 AM — quietNov 6, 1 PM — quietNov 6, 4 PM — quietNov 6, 7 PM — quietNov 6, 10 PM — quietNov 7, 1 AM — quietNov 7, 4 AM — quietNov 7, 7 AM — quietNov 7, 10 AM — quietNov 7, 1 PM — quietNov 7, 4 PM — quietNov 7, 7 PM — quietNov 7, 10 PM — quietNov 8, 1 AM — quietNov 8, 4 AM — quietNov 8, 7 AM — quietNov 8, 10 AM — quietNov 8, 1 PM — quietNov 8, 4 PM — quietNov 8, 7 PM — quietNov 8, 10 PM — quietNov 9, 1 AM — quietNov 9, 4 AM — quietNov 9, 7 AM — quietNov 9, 10 AM — quietNov 9, 1 PM — quietNov 9, 4 PM — quietNov 9, 7 PM — quietNov 9, 10 PM — quietNov 10, 1 AM — quietNov 10, 4 AM — quietNov 10, 7 AM — quietNov 10, 10 AM — quietNov 10, 1 PM — quietNov 10, 4 PM — quietNov 10, 7 PM — quietNov 10, 10 PM — quietYesterday, 1 AM — quietYesterday, 4 AM — quietYesterday, 7 AM — quietYesterday, 10 AM — quietYesterday, 1 PM — quietYesterday, 4 PM — quietYesterday, 7 PM — quietYesterday, 10 PM — quietToday, 1 AM — quietToday, 4 AM — quietToday, 7 AM — quietToday, 10 AM — quietToday, 1 PM — quietToday, 4 PM — quietToday, 7 PM — quiet 1
Nov 3Nov 4Nov 5Nov 6Nov 7Nov 8Nov 9Nov 10yesterdaynow · 8:19 PM ET
  1. 1

    Apple shares fall 4% in after-hours trading on guidance

    Apple stock declined approximately 4% during and after the earnings call as investors responded to the services slowdown forecast and margin guidance.

    “There are going to be some usage limits on features that rely on server-side models, which include Siri AI and intelligent photo editing, some other things like that. Anyone who needs greater capacity will be able to purchase expanded access in the future.”
    — John Ternus, Apple CEO · source
  2. background

    Apple Pay expands to India; global payments hit record revenue — Apple Pay launched in India with Axis Bank partnership, bringing the service to more than 90 markets globally. Payments revenue reached a record, bolstered by deployments like American Airlines' rollout of more than 37,000 iPhones to flight attendants for in-flight Tap to Pay purchases.

  3. background

    Ternus announces plans to charge for expanded Apple Intelligence access — CEO John Ternus outlined plans for paid access to certain AI features on his first earnings call in the role. He stated that usage limits will apply to server-side AI features including Siri and intelligent photo editing, with paid expanded access available to users who need greater capacity.

  4. background

    Apple reports record services revenue but forecasts December slowdown — Apple announced services revenue increased 10% to $31.6 billion in the September quarter, with video, cloud services, payments and advertising reaching records. However, CFO Kevan Parekh forecast December-quarter services growth of only 8% to 9%, citing sequential pressure from third-party licensing and foreign exchange.