Apple plans App Store fee hike to boost revenue

Apple is reportedly looking at changes to its App Store to boost revenue and improve margins, according to the latest Power On newsletter by Mark Gurman. The company would tweak how it takes a cut of app sales and in‑app purchases, a move that could reshape the economics of the platform. Gurman said the changes are still early in discussion, but Apple is preparing to adjust its fee structure in a bid to keep the App Store profitable as the market evolves.

The App Store has been a major revenue driver for Apple, generating more than $70 billion in 2023 from developer fees alone. Apple keeps a 15‑30 % commission on most sales, a rate that has drawn criticism from developers and regulators. The company has already lowered its fee for small developers to 15 % and cut the rate on subscription renewals to 15 % from 30 %, but it still faces pressure from the European Union, the U.S. Federal Trade Commission, and high‑profile developers such as Epic Games. In addition, the rise of alternative app stores and subscription‑based services from competitors like Google and Microsoft has intensified the need to keep the App Store attractive to both developers and users.

Gurman reports that Apple may roll out a new tiered subscription model that would let developers choose a lower fee for higher‑volume sales. The company could also introduce a revenue‑sharing scheme that rewards developers who drive user engagement or long‑term retention. Apple might add new tools for analytics and marketing to help developers grow their businesses, thereby encouraging them to stay on the platform. These changes would be designed to increase Apple’s share of the growing app economy while still providing developers with incentives to innovate.

If Apple moves forward, the company will likely test the new fee structure with a small group of developers before a wider rollout in the fourth quarter. The shift could affect millions of apps, altering how developers price in‑app content and subscriptions. For Apple, the changes signal a continued effort to protect its margins amid a crowded marketplace and increased scrutiny over its monopoly power. The outcome will be closely watched by developers, regulators, and investors alike, as the App Store remains a key battleground in the broader tech ecosystem.