Apple restarts its hunt for App Store margin with Schiller out of the chair
Bloomberg's Mark Gurman reports that Ternus and Cue want more from a store he estimates at $30bn a year, at a moment when Appfigures has US commission revenue falling and the Supreme Court has yet to rule.
The Product Desk
What happened
- Bloomberg's Mark Gurman reports that new Apple CEO John Ternus and services chief Eddy Cue are driving an effort to raise margins on an App Store already estimated to generate $30bn a year.
- Responsibility for the App Store is moving to Cue, who ran it until 2015 before Phil Schiller took over, with longtime team member Carson Oliver handling day-to-day operations.
- Apple has collected no commission on US App Store link-outs since April 2025, after a judge found it in contempt and ordered the charge stopped.
- Appfigures said in August that Apple's US commission revenue from the App Store has fallen 18 percent since the start of 2026.
Why it matters
- Who has to decide decision Any team weighing a move from in-app purchase to a web checkout is now making that call while the Supreme Court holds the fee question open, so the migration has to pencil out at a rate above today's zero.
- Who's exposed exposure The executive who told a court the outside-purchase fee would make Apple a collection agency no longer runs the store, which leaves developers relying on regulators and judges to make that argument for them.
- What it limits constraint With Brazil and Japan already subtracting from the commission base after writing their own rules, every further jurisdiction narrows where Apple can find the margin, pushing it toward charges regulators have not yet addressed.
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A developer who wired a web checkout last spring is pricing a business on a fee that does not exist yet may return: the Supreme Court has agreed to hear Apple's challenge to the contempt ruling and has not decided it [10]. The rate at stake is the 27 percent Apple wanted on purchases made outside the store, the one Phil Schiller testified in February 2025 that he had initially opposed on compliance risk and developer backlash [7]. In court he said he worried the fee would create an "antagonistic relationship" with developers and turn Apple into "some kind of collection agency" that might have to audit the ones who did not pay [8].
That courtroom transcript is the useful document to hold next to the plan Gurman describes in Power On, which is that Apple is looking at further ways to monetise the store and lift recurring revenue from it [1]. Nobody has named the mechanism. So the planning question for a team with billing on its roadmap is not which fee comes back, but how much of next year's revenue currently depends on a zero.
The pressure is visible in Apple's own reported numbers. Services came in at $30.7bn for the June quarter, a record for that quarter but short of the $31.4bn Wall Street had projected, a gap of $0.7bn, about 2.2 percent [13][17]. On the July call Apple said regulatory changes had started to weigh on Services growth [12]. Take Gurman's $30bn annual estimate for the store at an even quarterly rate and it is roughly $7.5bn, close to a quarter of that Services line [16]. The arithmetic is crude, mixing an outside annual estimate with one reported quarter, but it sizes the problem: the commission line that regulators have reached is a big enough slice that a double-digit percentage decline in the US alone has to be made up somewhere.
What actually happened is narrower than a settled rate would suggest: one commission was suspended by a court in one country, and the executive who argued against that commission under oath has stepped away from running the store to work on unspecified projects [3].
Gurman ties the departure to the monetisation push, and his verb is a hedge. Schiller, now 66, "seems to believe that such moves will only irk developers and governments", and per Gurman's internal sources, "there was no internal blowup or anything like that, [but] it's something he wanted no part of" [4][5]. That is one reporter's reconstruction of a motive, not a statement from Apple, and it should be read as such.
The forcing function for anyone shipping billing in the next two quarters is a single number: the commission rate at which your out-of-app checkout stops covering its own processing and support costs, measured against 27. A break-even below that means what you have is a position on a Supreme Court docket, sized like one rather than modelled as a price.
What to watch
- The Supreme Court's decision on the contempt ruling, which decides whether the 27 percent link-out commission returns in the US.
- Whether Apple names an actual mechanism for the new revenue, in developer terms or at a developer event, rather than leaving it unspecified.
- Appfigures' next reading on US commission revenue, and whether the Brazil and Japan declines continue after their new rules bed in.
Clarity's read
What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence40
- Adoption
- Not scored
- Hype gap+25
- Incentives60
- Confidence50
Perspective Coverage
5 publishers- Builder
- Builder 41%
- Operator
- Operator 28%
- Investor
- Investor 31%
Claim ledger
Ranked by verification strength, evidence, and original report placement.
- [1]
Bloomberg's Mark Gurman wrote in his Power On newsletter that Apple is looking at further ways to monetize the App Store and increase the company's recurring revenue from the platform.
- [2]
Gurman said newly appointed Apple CEO John Ternus and services chief Eddy Cue are behind the effort to raise margins from the App Store, which already generates Apple an estimated $30 billion a year.
- [3]
Gurman ties the monetization effort to Apple Fellow Phil Schiller's decision to step away from running the App Store and work on other unspecified projects.
- [4]
Gurman wrote that Schiller, now 66 and edging toward retirement, "seems to believe that such moves will only irk developers and governments".
- [5]
Based on internal sources at Apple, Gurman said "there was no internal blowup or anything like that, [but] it's something he wanted no part of."
- [6]
The App Store generates Apple an estimated $30 billion a year.
- [7]
In February 2025, as part of Apple's legal battle with Epic Games, Schiller testified that he initially opposed the 27 percent commission Apple originally wanted to charge on purchases made outside the App Store, citing compliance risks and potential developer backlash.
- [8]
Schiller said in court that he had concerns the fee would create an "antagonistic relationship" between Apple and developers, and worried about Apple becoming "some kind of collection agency" that might need to audit developers who didn't pay.
- [9]
Apple has not collected fees from App Store link-outs in the U.S. since April 2025, after being found in contempt of court for charging 27 percent commission and ordered by a judge to stop the practice.
- [10]
The Supreme Court has agreed to hear Apple's challenge to the contempt ruling but has not yet decided it.
- [11]
Apple is said to be moving responsibility for the App Store to Eddy Cue, who oversaw it until 2015 when Schiller took over, with longtime App Store team member Carson Oliver overseeing day-to-day operations.
- [12]
Apple said during its July earnings call that regulatory changes have started to weigh on its Services growth.
- [13]
Apple reported services revenue of $30.7 billion for the June quarter, a record for the period but short of the $31.4 billion analysts expected.
- [14]
Analytics firm Appfigures said in August that Apple's U.S. commission revenue from the App Store has fallen 18 percent since the start of 2026.
- [15]
Appfigures also found App Store revenue declining in Brazil and Japan since both countries introduced new regulations.
- [16]
An estimated $30 billion a year for the App Store works out to about $7.5 billion a quarter, roughly 24 percent of the $30.7 billion services revenue Apple reported for the June quarter.
- [17]
Apple's June-quarter services revenue came in $0.7 billion below the analyst expectation, about 2.2 percent short.
Sources
5 independent publishers whose own reporting we read for this story.
- 9to5mac.comApple might soon make App Store changes to raise revenue, increase margins: report
2 articles · September 6, 2026
- daringfireball.netDaring Fireball: Gurman on Schiller's Departure and Ternus's Goals for the App Store
1 article · September 6, 2026
- digitaltrends.comApple may have found another way to make the App Store pay up - Digital Trends
1 article · September 6, 2026
- macrumors.comApple Plans to Squeeze More Revenue From the App Store, Report Says
2 articles · September 7, 2026
- techcrunch.comPhil Schiller’s App Store exit reportedly driven by wariness over future plans
2 articles · September 6, 2026
Topics and entities
Topics
- App store fees and commissions
- App store regulation