Apple is looking for addiitonal ways to squeeze more money out of the App Store, according to Bloomberg’s Mark Gurman.
In his latest Power On newsletter, Bloomberg‘s Mark Gurman said that newly crowned Apple CEO John Ternus and services chief Eddy Cue are pushing for ways to increase margins from the App Store. It should be noted that said store already generates an estimated $30 billion a year for the Cupertino company.
Gurman says Apple Fellow Phil Schiller’s decision to step away from the company is connected to Ternus and Cue’s decision to milk more money from the App Store.
Now, Schiller is 66 and clearly wanted to have some semblance of retirement. He can focus on philanthropy and spend more time with family. But there’s a bit more to the story, I’m told. Ternus and services chief Eddy Cue want to make even more money from the App Store and figure out ways to raise margins and squeeze additional recurring revenue from the platform. Schiller, on the other hand, seems to believe that such moves will only further irk developers and governments. While there was no internal blowup or anything like that, it’s something he wanted no part of.
Back in February 2025, Apple’s lengthy legal battle with Epic Games, Schiller testified that he initially opposed the 27% commission Apple originally wanted to charge on purchases made outside the App Store, due to worries over compliance risks and potential developer backlash.
Schiller said at the time that he had concerns that the fee would create an “antagonistic relationship” between Apple and developers, worrying that Apple might become “some kind of collection agency” that would audit developers who didn’t pay.
During its July earnings call it was revealed how regulatory changes have started to weigh on its Services growth. Apple reported services revenue of $30.7 billion for the June quarter, a record for the period but short of the $31.4 billion that analysts expected.
