GoKawiilBofA warns Meta's Muse app could erode Apple services revenue
Bank of America analyst Wamsi Mohan issued a note saying Meta's Muse AI agent, now nearing two weeks atop the US App Store, shows how third-party AI agents could bypass Apple's ecosystem for product discovery, referrals and transactions. Mohan kept a 'Buy' rating and $370 price target on Apple shares, which fell more than 2.5% on the day of the note. Muse has reportedly reached over 3.4 million downloads and integrates commerce partners like Shopify, Shop Pay, Expedia and PayPal.
GoKawiil's interpretation of the reporting above, not reported fact.
Mohan's framing suggests that even if Apple keeps selling iPhones, it could lose the higher-margin 'routing economics' tied to search, app stores and transactions if AI agents take over discovery and checkout. This positions hardware performance as no longer sufficient for Apple to capture AI-driven revenue, since software integration and agent ownership may matter more. The market reaction shows investors are already weighing this risk, even as BofA still expects Apple to benefit long-term from on-device AI.
- Bank of America flags Meta's Muse AI agent as a competitive threat to Apple's services revenue.
- Muse has hit roughly 3.4 million downloads and topped the US App Store, faster than ChatGPT did.
- BofA still rates Apple 'Buy' with a $370 target, citing its edge-computing hardware potential despite the new risk.
Source: 9to5mac.com — Marcus Mendes, 2026-09-30
Published there as: “Bank of America says Meta’s Muse highlights a new risk for Apple’s services revenue”
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