Quick Answer: The App Router can improve perceived performance because it supports React Server Components, streaming, nested layouts, and more granular code splitting, which reduces client-side JavaScript and speeds up initial renders. The tradeoff is added complexity and, in some cases, more server work and hydration coordination; the Pages Router is simpler and often easier to optimize predictably for purely static or SSR workloads.
In Next.js, the performance difference between the App Router and Pages Router is less about raw framework speed and more about where the rendering cost is paid. The App Router is designed for modern server-first patterns: it can ship less JavaScript to the browser, stream UI incrementally, and keep shared layouts persistent across navigations, which often improves Largest Contentful Paint and interaction readiness. However, those gains come with architectural tradeoffs: server components, caching behavior, and route segment boundaries require more careful implementation, and poorly structured data fetching can shift latency to the server. The Pages Router remains a strong option when you need straightforward SSR/SSG behavior, mature patterns, and highly predictable runtime characteristics, especially for teams prioritizing simplicity and operational stability over advanced rendering capabilities.