Apple eyes App Store changes to boost revenue, report says

Apple ↗ 5.31% is considering changes to its App Store designed to raise margins and extract additional recurring revenue from the platform, according to Bloomberg's Mark Gurman. The effort is being driven by new CEO John Ternus and services SVP Eddy Cue, who recently took over responsibility for the App Store following Phil Schiller's departure from the role.

A New Direction for the App Store

Writing in his Power On newsletter on Sunday, Gurman reported that Apple wants to "figure out ways to raise margins and squeeze additional recurring revenue from the platform". The push comes as Ternus officially takes the reins from Tim Cook, who stepped aside as CEO on September 1 and transitioned to the role of executive chairman.9to5mac+3

Cue, who previously oversaw the App Store until 2015, regained responsibility for it last week when Schiller stepped down from running the store and Apple's product events. Day-to-day operations of the App Store will be led by Carson Oliver, a longtime department veteran who now reports directly to Cue.macdailynews+2

Schiller's Departure Tied to Strategy Shift

The planned changes appear to have been a factor in Schiller's decision to step back. Gurman reported that Schiller believed the moves would "only further irk developers and governments" and that while there was no internal conflict, "it's something he wanted no part of". Schiller, 66, will remain at Apple as a Fellow working on unspecified initiatives, though employees view the shift as a step toward eventual retirement.firstpost+3

Potential Changes Under Consideration

While Apple has not disclosed specific plans, several possibilities have been floated. The company could streamline its manual app review process, which is costly to maintain. It could also raise the $99 annual developer membership fee, or introduce traffic-based subscription fees for large developers to offset infrastructure costs. Apple's App Store has long been a flashpoint for regulatory scrutiny and developer frustration over commission rates, and any moves to increase fees could intensify those tensions.9to5mac

The changes are being planned against a backdrop of broader upheaval at Apple. Beyond the Cook-to-Ternus transition, the company has seen a wave of senior departures, including former COO Jeff Williams, general counsel Kate Adams, and Apple Pay head Jennifer Bailey. Apple's next product event is scheduled for September 9, where the new leadership team will face its first major public test.newsgpt+1