App Store commission revenue in the U.S. has fallen 18 percent since the start of 2026, and Apple is now weighing ways to recover those losses through higher developer fees and new recurring charges tied to app traffic.
The push comes from newly installed CEO John Ternus and services leader Eddy Cue, according to Bloomberg’s Mark Gurman, and represents a marked departure from the platform’s previous approach to developer relations. The effort marks a shift as the company grapples with its first sequential Services revenue decline since 2022.
Phil Schiller, who ran the App Store following his 2020 transition from marketing chief to Apple Fellow, stepped down from that role last week. He opposed the new monetization push, believing it would antagonize both developers and regulators. While there was no internal conflict, he wanted no part of the initiative. Leadership of the App Store has now shifted to Eddy Cue’s services division, with Carson Oliver handling day-to-day operations and reporting directly to Cue.
As per Gurman:
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.
The specifics remain fluid, but Apple could potentially raise the developer program membership fee from its current $99 per year or charging large-scale developers a subscription tied to app traffic to offset Apple’s infrastructure costs. These mechanisms would alter the App Store’s business model while preserving the existing 15-30% commission structure.
The App Store remains a pillar of Apple’s Services revenue, estimated to account for nearly one-third of the division’s total income. Services revenue hit $30.7 billion in the June 2026 quarter but marked the segment’s first sequential decline since 2022. Regulatory changes have compounded the pressure: new rules in Japan, Brazil, and the European Union now permit alternative app stores, external payment methods, and out-of-app purchase offers. Additionally, an ongoing Epic Games lawsuit has temporarily barred Apple from collecting commissions on purchases made through external links in the United States.
The platform boasts over 850 million average weekly users across 175 countries and regions, yet growth has stalled against both regulatory headwinds and market saturation.
Schiller’s internal emails, revealed during regulatory litigation, showed he advocated for reducing App Store fees rather than increasing them. Under his stewardship, the App Store navigated the Digital Markets Act in Europe, the Epic Games lawsuit, and cascading regulatory demands from Brazil and Japan. Handing the platform to a services-first team under Ternus and Cue represents a calculated tonal shift toward aggressive monetization over developer relations.
Cue previously led the App Store until 2015, when responsibility passed to Schiller. His return under a CEO focused on Services growth suggests a willingness to pursue strategies that Cook’s administration may have deemed politically risky.
