Tim Cook's pay package indicates he will remain very active at Apple; sources: Apple's plans to squeeze more App Store profits prompted Phil Schiller to leave (Mark Gurman/Bloomberg)

According to Mark Gurman's latest Power On newsletter, Apple is reportedly contemplating adjustments to its App Store with the aim of boosting revenue and increasing margins. The specific modifications remain uncertain, but the initiative is reportedly spearheaded by new CEO John Ternus and existing services SVP Eddy Cue.

This move is believed to have been a factor in Phil Schiller's recent departure from Apple. Schiller, who previously held the position of marketing SVP until 2020, transitioned to the role of Apple Fellow, overseeing the App Store. However, Schiller expressed his disapproval of potential changes, suggesting they might further infuriate developers and governments. Despite no internal disputes, Schiller opted not to participate in these proposed modifications.

Numerous avenues exist for Apple to enhance margins from the App Store. One possibility could involve discontinuing its manual app review process, which may incur costs and prove ineffective in an era of automated coding. Another option could be raising the price of its developer membership, now set at $99 per year. Considering that many developers spend $200 monthly on AI tools like Codex and Claude for app development, Apple might be able to charge more and still maintain a positive response from users.

Additionally, the company could introduce a subscription fee for large developers based on traffic, thereby alleviating certain infrastructure expenses.

The long-term implications of these potential changes remain to be seen, but the possibility of alterations to the App Store is certainly intriguing.