Apple is reportedly considering changes to the App Store as new CEO John Ternus and services chief Eddy Cue look for ways to increase margins and bring in more recurring revenue from the platform. The plans remain unclear, but the discussions could lead to changes in how Apple runs the store and charges developers.
Bloomberg’s Mark Gurman reports that Ternus and Cue want to find new ways to make more money from the App Store, which already generates an estimated $30 billion annually. The report also suggests that this push played a role in longtime Apple executive Phil Schiller stepping away from his App Store responsibilities.
Schiller reportedly opposed moves that could create more tension with developers and regulators, especially as Apple already faces growing scrutiny over App Store fees, policies, and competition rules in several markets.
Don’t miss the best of The Mac Observer
Set us as a preferred source and our Apple reporting ranks higher in your Google Search results and Discover feed — one tap, no account changes.
What Apple could change in the App Store
Apple has several options if it wants to reduce costs or increase revenue, although the company has not announced any specific plans. One possibility involves changing the app review process, which currently relies heavily on manual reviews and requires significant resources.
Apple could also raise the annual Apple Developer Program fee from its current $99 price, or introduce new charges for larger developers that generate heavy traffic and use more App Store infrastructure.
Any major change would attract close attention because developers already criticize Apple’s commission structure and App Store rules. Governments have also forced Apple to make changes in regions including the European Union.
For now, Apple’s exact plans remain unknown, but the reported discussions suggest that the App Store will become an important area of focus under Ternus as he starts reshaping the company’s strategy.
Discussion