Apple’s leadership transition is being followed by a possible shift in how the company manages its App Store business. The tech giant is reportedly considering changes that could help increase margins and generate more recurring revenue from its marketplace.
Earlier this month, John Ternus took over as Apple’s new Chief Executive Officer, replacing Tim Cook. Former Chief Financial Officer Luca Maestri also announced that he would step away from his remaining corporate responsibilities. Phil Schiller separately left his role as head of the App Store and Apple Events.
According to a report, Schiller’s exit came as Ternus and Eddy Cue began looking at ways to increase revenue from the App Store. The changes could be introduced in the coming weeks or months, although the exact plans have not been disclosed.
The reported strategy could allow Apple to “make even more money” from its marketplace. Ternus and Cue are said to be exploring measures that could improve margins and strengthen recurring revenue.
Schiller reportedly believed that such moves could further “irk” app developers, governments and authorities. However, there was reportedly no direct pushback from him against the planned changes. Instead, he did not want to be involved in the new direction planned for Apple’s apps and games marketplace, the report said.
The App Store generates around $30 billion, or roughly Rs. 2,83,225 crore, in revenue for Apple. Given the scale of the business, Schiller’s departure is notable. Neither Apple nor Schiller has officially disclosed the reason for his exit. Reports suggest that Schiller remains associated with Apple in other capacities, while Eddy Cue has taken over as head of the App Store.
The development comes months after Apple ended its legal battle with Epic Games over Fortnite. Apple had removed the battle royale game from the App Store after accusing Epic of violating its platform rules.
Apple charged a 30% fee on in-game transactions and did not allow developers to redirect users to external payment gateways, which could help them avoid the charges.
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