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Apple Aims to Boost App Store Profit, Schiller Departs

AppleInsider •
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Phil Schiller has departed his roles as head of events and the App Store to focus on special projects, reportedly because he opposes upcoming changes aimed at increasing App Store revenue. According to Bloomberg, Schiller does not want to be involved in the direction Apple is taking. John Ternus and Eddy Cue are reportedly tasked with driving new revenue streams.

Analysts suggest the only practical paths to higher profits are raising commissions or cutting costs. Raising fees could draw scrutiny from regulators and draw ire from figures like Tim Sweeney of Epic Games, especially in the EU where the Digital Markets Act limits price increases. In the US, Apple faces ongoing legal appeals regarding commission structures.

Alternatively, cutting costs would likely mean job reductions, potentially impacting the App Review team, which already faces staffing challenges. The report suggests Apple may be acknowledging the difficulty of maintaining control as third-party app stores emerge. Whatever strategy Apple pursues, the tension between profit motives and user experience remains a central conflict.