Apple is reportedly examining ways to generate more money from the App Store, with the company’s new leadership said to be looking at opportunities to increase margins and build additional recurring revenue from its software marketplace.
The push is reportedly being driven by new Apple CEO John Ternus alongside Services chief Eddy Cue, marking a potentially significant change in direction for one of Apple’s most important services businesses.
As reported by MacRumors, citing Bloomberg’s Mark Gurman, Apple is looking at ways to increase the amount of recurring revenue it generates from the App Store as the company searches for further growth across its services operation.
The reported discussions come shortly after Phil Schiller stepped back from overseeing the App Store, ending his long-running day-to-day involvement with the marketplace while remaining an Apple Fellow.
Schiller had continued to oversee the App Store after moving away from his previous role as Apple’s senior vice president of Worldwide Marketing in 2020. His departure from App Store leadership leaves Apple with an opportunity to rethink how the platform is managed under Ternus.
Exactly how Apple could extract additional revenue from the App Store remains unclear. Apple already generates income through commissions on eligible app purchases and subscriptions, alongside advertising sold to developers looking to promote their apps.
The advertising side of the business has also been expanding. Apple has introduced additional opportunities for developers to advertise across the App Store, including placements within the Today tab and search results.
The potential changes arrive at a complicated time for Apple’s App Store business. Regulators and courts around the world have increasingly challenged Apple’s rules governing app distribution, payments and commissions, forcing the company to make changes in some markets.
Apple’s wider Services division has become an increasingly important part of the business, encompassing the App Store alongside Apple Music, iCloud+, Apple TV, AppleCare and other subscription and digital offerings.
Any attempt to generate significantly more money from developers could attract scrutiny, particularly as Apple continues to face pressure over the fees and restrictions associated with distributing software through its platforms.
The reported strategy also offers an early indication of how Ternus could approach Apple’s business following his appointment as CEO on September 1. While his background is predominantly in hardware engineering, the App Store and Apple’s growing Services operation will be major parts of the company he now oversees.