While tech giants like Microsoft, Google, Amazon, and Meta pour hundreds of billions into building massive AI infrastructure and frontier models, Apple appears to be quietly winning in a different way: by collecting hefty fees from the very rivals trying to dominate the space. According to recent analysis from AppMagic and reporting by The Wall Street Journal, generative AI apps paid Apple nearly $900 million in App Store fees in 2025 alone. Projections now indicate that figure will surpass $1 billion in 2026, driven primarily by in-app subscription commissions. Apple charges developers a standard 30% cut on subscription fees in the first year (dropping to 15% in subsequent years) when users sign up for premium AI services through apps on iOS, iPadOS, or macOS. The apps themselves — such as OpenAI’s ChatGPT and xAI’s Grok — are typically free to download, but the revenue flows from users upgrading to paid tiers for advanced features, faster responses, or higher usage limits. OpenAI’s ChatGPT remains the dominant contributor, accounting for approximately 75% of the generative AI commission revenue on the App Store last year. xAI’s Grok trailed far behind at about 5%, with other tools like Anthropic’s Claude and Google’s Gemini making up the rest. Monthly subscription fees for these services often range from $20 upward, meaning Apple’s cut adds up quickly across millions of users. The revenue surge follows a sharp upward trajectory: App Store fees from generative AI apps rose from around $35 million in January 2025 to a peak of $101 million in August 2025, before moderating slightly due to fluctuating download trends. This passive income stream stands in stark contrast to the aggressive spending by Apple’s competitors. The so-called “hyperscalers” are collectively investing upwards of $700 billion this year in AI data centers, chips, and model training — expenses that have raised investor concerns about profitability in the short term. Meanwhile, Apple benefits from its massive installed base of over 2.5 billion active devices, which serve as the primary gateway for many consumers to access these third-party AI tools. Even as Apple Intelligence continues to roll out and mature, the ecosystem still funnels significant traffic and subscriptions to external providers. Critics have long pointed to Apple’s perceived lag in generative AI development, particularly with Siri remaining less capable than modern chatbots in certain tasks. However, the App Store model turns that perceived weakness into a financial strength: Apple doesn’t need to build the best AI model to profit from the category, it simply needs to control the platform where users discover and pay for them. As discussions around AI monetization heat up, this dynamic underscores Apple’s enduring advantage as a “landlord” in the mobile ecosystem. While rivals burn cash to build the technology, Apple collects rent on the distribution.For now, the strategy appears to be paying off handsomely, providing a buffer for investors amid broader competitive pressures in hardware and services. Apple’s stock has held steady in recent trading, reflecting confidence in the resilience of its high-margin App Store business, even in the fast-evolving world of artificial intelligence. A little birdie sings us very positive songs regarding Apple’s all-new next-gen Siri. – MacDailyNews, September 26, 2025 Support MacDailyNews at no extra cost to you by using this link to shop at Amazon. The post Apple set to pocket $1 billion+ from rival AI apps in 2026 despite Siri issues appeared first on MacDailyNews. You're currently a free subscriber to MacDailyNews. For the full experience, upgrade your subscription.
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Saturday, March 21, 2026
Apple set to pocket $1 billion+ from rival AI apps in 2026 despite Siri issues
Apple fends off renewed Apple Watch import ban attempt
In a significant development for Apple and its popular Apple Watch wearable lineup, a U.S. International Trade Commission (ITC) administrative law judge has issued a preliminary ruling that the company’s redesigned Apple Watch models do not infringe on patents held by medical technology firm Masimo Corporation. The decision rejects Masimo’s latest attempt to impose a renewed import ban on the smartwatches, providing Apple with a key legal reprieve in a years-long battle over blood-oxygen monitoring technology. The ruling, made public on Thursday, March 19, 2026, by Administrative Law Judge Monica Bhattacharyya, found no direct infringement by Apple’s “Redesign 2 Watch” on Masimo’s patents (U.S. Patent Nos. 10,912,502 and 10,945,648), which relate to light-based pulse oximetry. The judge also determined that Apple does not induce infringement when the redesigned watch is paired with an iPhone for use in the United States. This preliminary determination stems from an enforcement proceeding initiated after Apple modified its Apple Watch following a 2023 ITC import ban on certain models, including the Series 9 and Ultra 2. That earlier ban, which took effect after presidential review, forced Apple to disable or remove the blood-oxygen feature in U.S.-sold devices to resume imports. Apple later reintroduced an updated version of the technology in August 2025, with approval from U.S. Customs and Border Protection, prompting Masimo to challenge the workaround as still violative. The ITC judge’s finding marks a win for Apple in this specific enforcement action, allowing the tech giant to continue importing and selling its current Apple Watch models without immediate disruption. However, the decision is preliminary—the full ITC commission must review and decide whether to affirm it. A final ruling could come in the coming months. Adding complexity to the saga, on the same day as the ITC preliminary ruling, the U.S. Court of Appeals for the Federal Circuit issued a separate precedential opinion affirming the ITC’s original 2023 infringement findings against Apple’s unmodified watches. The appeals court found no error in the commission’s determinations on domestic industry, patent validity, or infringement, upholding the basis for the prior ban. Despite this affirmation of the historical ruling, Apple’s redesigned implementation appears to have successfully circumvented the issues, as noted by legal analysts and reports from sources like Reuters and Bloomberg Law. The dispute dates back several years, originating from allegations that Apple incorporated Masimo’s patented pulse oximetry technology (used for non-invasive blood-oxygen level measurements) without permission. Masimo, known for its medical monitoring devices, has argued that Apple’s feature infringes its intellectual property, while Apple has maintained that its designs are independent and that the case represents an attempt to hinder competition. Apple representatives have described Masimo’s efforts as meritless, and the company has continued to innovate in health features on the Apple Watch, which remains a cornerstone of its wearable ecosystem. Masimo has not immediately commented on the latest developments, but the company could seek further appeals or adjustments in the ongoing litigation. For consumers and investors, the preliminary ruling provides reassurance that Apple Watch availability in the U.S. market is unlikely to face near-term interruptions. The full ITC review will be closely watched, as it could set precedents for how redesigned products are evaluated in section 337 trade investigations. MacDailyNews Take: In the meantime, Apple continues to dominate the smartwatch category, with the Apple Watch serving millions of users for fitness tracking, health monitoring, and everyday connectivity. Support MacDailyNews at no extra cost to you by using this link to shop at Amazon. The post Apple fends off renewed Apple Watch import ban attempt appeared first on MacDailyNews. You're currently a free subscriber to MacDailyNews. For the full experience, upgrade your subscription.
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Apple announces Martin Scorsese thriller ‘What Happens at Night’ starring Leonardo DiCaprio and Jennifer Lawrence
Apple TV has officially announced the start of principal photography on a major new original film, “What Happens at Night,” directed by legendary filmmaker Martin Scorsese and starring Academy Award winners Leonardo DiCaprio and Jennifer Lawrence. The project, an Apple Original Film, reunites Scorsese with DiCaprio after their acclaimed collaboration on “Killers of the Flower Moon,” which garnered 10 Oscar nominations. Scorsese has become a frequent collaborator with Apple, including recent appearances in projects like the Keanu Reeves comedy “Outcome” and various documentaries. Adapted from Peter Cameron’s novel of the same name, “What Happens at Night” is a dream-like psychological thriller. The story follows an unnamed American couple (portrayed by DiCaprio and Lawrence) who travel to a strange, snowy European city to adopt a baby. The wife is battling cancer and becomes desperately weak during the journey, raising concerns that her illness could prevent the orphanage from releasing the child. Upon arrival, they check into the cavernous and eerily deserted Borgarfjaroasysla Grand Imperial Hotel, where the bar is always open and the lobby is populated by an enigmatic cast of characters — including an ancient, flamboyant chanteuse, a debauched businessman, and an enigmatic faith healer. As the couple struggles to claim their baby in this baffling, frozen world where nothing is as it seems, deeper uncertainties surface about their marriage, their identities, and life itself. The supporting cast features an impressive lineup including Patricia Clarkson, Jared Harris, Mads Mikkelsen, and Welker White. Apple TV confirmed the film’s existence and production status on March 19, 2026, via its official @AppleTV account on X, sharing the first-look image of DiCaprio and Lawrence in character:
The photo depicts the couple walking in the snow in front of a frost-covered vehicle, capturing the story’s wintry, mysterious atmosphere. Principal photography is underway, with reports indicating filming will continue through May 2026. While no official release date has been set, the production schedule suggests a possible premiere as early as fall 2026, potentially positioning it as a contender for the 2027 awards season. Those who can wrap their heads around Apple’s massive cash mountain and the company’s unparalleled ability to generate cash can clearly see who the winner will be. The most talented producers, writers, directors, editors, actors, etc. are attracted to exactly what Apple has and makes in vast abundance: Cash. The king. Like bears to honey, it’s happening already. — MacDailyNews, January 3, 2018 Support MacDailyNews at no extra cost to you by using this link to shop at Amazon. The post Apple announces Martin Scorsese thriller ‘What Happens at Night’ starring Leonardo DiCaprio and Jennifer Lawrence appeared first on MacDailyNews. You're currently a free subscriber to MacDailyNews. For the full experience, upgrade your subscription.
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Apple set to pocket $1 billion+ from rival AI apps in 2026 despite Siri issues
While tech giants like Microsoft, Google, Amazon, and Meta pour hundreds of billions into building massive AI infrastructure and frontier mo...
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Substack is covering the cost of your first paid month of MacDailyNews by MacDailyNews. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ...
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Apple, aiming push more urgently into the smart home market, is said to be nearing the launch of a new product category: a wall-mounted disp...
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Apple TV+ has signed a new multi-year, first-look feature film deal with The North Road Company’s Chernin Entertainment, the flagship… ͏ ...
