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Reports describe two ways for Apple to make more money; only one is good

2026-09-07 | original

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Why This Matters

Bloomberg reports point to two paths for Apple to grow Services revenue: a privacy-focused home security and monitoring subscription tied to new smart home hardware, and efforts to extract higher margins and recurring revenue from the App Store. The first would expand Apple's ecosystem into a competitive new category; the second risks inflaming antitrust scrutiny already targeting Apple's app distribution monopoly.

Key Takeaways

Apple is reportedly planning AI-based home security cameras and automation hardware paired with a privacy-centric monitoring subscription.
Separately, Ternus and Eddy Cue are said to be exploring ways to raise App Store margins and recurring revenue.
Pushing harder on App Store economics invites more regulatory backlash, given Apple's dominance over iPhone app distribution.

Worth a Look

Aqara Camera Hub G3 — While we wait for Apple's rumored privacy-focused home camera and monitoring service, the Aqara Camera Hub G3 already works with Apple Home and HomeKit Secure Video, so footage runs through your iCloud account. It doubles as a Zigbee hub and IR blaster, making it a tidy hub for a growing Apple-centric smart home.

See Aqara Camera Hub G3 on Amazon → Affiliate link — we may earn a commission on purchases, at no extra cost to you. Product picked by AI based on this article; it is not a tested recommendation.

There were two reports in the last few days indicating different routes for Apple to make more money by boosting Services revenue.

In my view, it should absolutely do the first of these, but not the second – and it appears Phil Schiller may agree …

Let’s start by summarizing the two reports.

Home security & monitoring service

On Friday, Bloomberg suggested that Apple may be planning a new home security and monitoring service to sit alongside some of the new home hardware we’re expecting.

Apple is planning a privacy-centric home security camera and automation device that will use AI to monitor the surrounding environment instead of actual video footage. It will tap into a new home security and monitoring service.

Squeezing more revenue from the App Store

A second report from the same source on Sunday said that the company is looking at ways to squeeze more revenue and profit from the App Store.

Ternus and services chief Eddy Cue want to make even more money from the App Store and figure out ways to raise margins and squeeze additional recurring revenue from the platform.

Apple should not take the latter approach

... continue reading

Explore topics: apple app store services revenue bloomberg eddy cue