Apple is reportedly exploring changes to the App Store aimed at increasing revenue and improving margins, according to a report from Mark Gurman’s Power On newsletter. The exact nature of the potential changes remains unclear, but the effort centers on finding new ways to generate recurring income from the platform.
Gurman reports that Apple wants to “figure out ways to raise margins and squeeze additional recurring revenue” from the App Store. The initiative is said to be driven largely by new CEO John Ternus and services SVP Eddy Cue.
Schiller’s Departure Tied to the Effort
The reported push may have factored into the recent exit of longtime executive Phil Schiller, who left the company last week. After stepping down as marketing SVP in 2020, Schiller became an Apple Fellow, a role that included overseeing the App Store.
Schiller reportedly believed such moves would further frustrate developers and regulators. While there was no internal conflict, it was described as something he wanted no part of.
Possible Paths to Higher Margins
There are several ways Apple could raise margins from the App Store. One option would be eliminating the manual app review process, which is likely costly and less effective in the era of agentic coding. Increased automation of app review could reduce expenses, though it may not sit well with users.
Apple could also raise the price of its developer membership, currently set at EUR 85 per year. With many small developers already spending around EUR 172 per month on AI coding subscriptions such as Codex and Claude, there may be room to charge more. Another possibility would be charging large developers a subscription fee based on traffic, helping offset infrastructure costs.
Apple has not confirmed any specific plans, and the timing or scope of any changes remains unknown. Its developer membership continues to be priced at EUR 85 per year.
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