Written by Dave Mark
Tuesday, Phil Schiller had a sit-down to talk about major changes coming to the App Store. Jim Dalrymple wrote a nice overview of the changes in this post.
One of the three core topics Phil covered was the expansion of subscription pricing. From JimD’s post:
Currently the 70-30 revenue split for subscriptions is the same as regular purchased apps. However, under the new subscription rules, that revenue split will favor the developers more in the second year on individual subscriptions. Developers will get an 85-15 revenue share for all subscribers that have been customers for over a year. This will also affect all existing apps and subscribers, not just new apps.
Developers will be able to choose one of over 200 subscription price points, and they can create territory specific prices, making subscriptions even more flexible.
John Gruber dug into the details in this longer post, focusing on the uncertainty seemingly built into the system:
The problem with that is that developers don’t know whether they’re going to be approved or not. As it stands, they would need to do all the engineering (and design) work to support subscriptions, submit the app, and wait to see if it’s approved and perhaps appeal if it isn’t. That’s bad enough for an existing app whose developer wants to switch to subscription pricing. But this uncertainty is downright untenable for a new app whose developer sees subscription pricing as the only sustainable business model to justify the app’s development in the first place.
The dream for developers is to be able to make money doing what they love, building apps for the App Store. For most developers, that dream is simply unrealistic. The App Store economics just aren’t there any more. The possibility of subscription pricing can help balance the scales, make it more financially feasible to make a living building and maintaining apps.
But developers need a bit more guidance here. They need to know up front if an app they build is eligible for subscription pricing. If not, they can put there energies into building something else.
My guess is, this guidance is coming, either at next week’s WWDC or as subscription pricing gets closer to rollout. But sooner is better than later for these details.
Not even six months after taking over the App Store, and just five days before the start of the Worldwide Developers Conference (WWDC), Apple’s Senior Vice President of Worldwide Marketing, Phil Schiller sat down on Tuesday to discuss some major changes coming to the App Store this year.
Schiller outlined three areas that his team has been working to improve:
- App Review
- Business Models
- App Discovery/Search Ads
App Review
If you talk to any developer, you will hear a variety of issues they have with the App Store. Some are very specific, while others have been affecting all developers. One of those issues, and one that Schiller’s team focused on, is app review.
App review ensures the products submitted by developers work properly and that they don’t contain any type of code that could adversely affect the consumer. It’s quality control, but it’s also Apple looking out for its customers. It’s an important step in the entire App Store process.
Typically, when a developer submits an app, it gets reviewed by the app review team. They make sure the app adheres to the guidelines that Apple set out for all apps. This process could take up to five days to complete. In the past month or so we’ve seen that time drop to just one day for a lot of apps.
It would be easy to just get rid of that step, but instead of doing that, Schiller’s team focused on why it took so long and fixed it.
“We’re never going to get rid of that [app review] because it matters,” said Schiller.
He said that Apple does about 100,000 app reviews per week and that they’ve developed new processes to make reviews faster, while maintaining the quality that Apple, and its customers, expect.
The end result is that Apple has a sustained rate of reviewing 50% of apps in 24 hours and 90% in 48 hours.
Business Models
In addition to app review, Apple looked at its subscription model and decided to open it up to all product categories. Other companies can also try to see if this method is also effective for them by using programs like the entrepreneur games. Until now, news apps and other publications were the only products that could really take advantage of the subscription-based business model on the App Store.
This will be a big move for companies, which may have utilized sessions like Power BI Training, that have multiple apps—instead of trying to get customers to subscribe to every app, they can offer a value subscription to all the content they offer.
“Having to subscribe to multiple apps can be very confusing for our customers,” said Eduardo Henrique, co-founder & head of global expansion at PlayKids. “This brings value to customers and it’s easier to communicate what we offer.”
When the new subscription platform is rolled out, Henrique said, “this is our top priority.”
There is more to the new subscription model than just having it across the product categories.
Currently the 70-30 revenue split for subscriptions is the same as regular purchased apps. However, under the new subscription rules, that revenue split will favor the developers more in the second year on individual subscriptions. Developers will get an 85-15 revenue share for all subscribers that have been customers for over a year. This will also affect all existing apps and subscribers, not just new apps.
Developers will be able to choose one of over 200 subscription price points, and they can create territory specific prices, making subscriptions even more flexible. If a developer chooses to increase the subscription price, customers will be notified and they will have to authorize that increase. No customer will ever be charged a higher rate without first authorizing it, explained Schiller.
Customers will also be able to upgrade, downgrade or even side grade subscriptions, if those options are available to them. Developers can also keep current subscriptions at one price, but charge new subscribers a different price.
The options for the new subscription model seem very well thought out.
App Discovery
App discovery is one of those areas that developers and customers have complained about for years. Finding apps is sometimes just a chore, but Apple has some ideas here too.
“We want our customers to have a reason to come to the App Store every day,” said Schiller.
The “Featured” section of the App Store will filter apps you already have installed on your device, so you are only looking at new apps. Apple is also bringing back the Categories tab for the store, allowing users to more easily browse through apps.
One of the ways many of us find apps is through personal recommendations. Apple will now have a Share sheet when you 3D Touch on an app on your home screen that will allow you to share the app on social networks, or with your family and friends. Developers can still use the sharing feature inside the apps, but this is another way for people to directly recommend an app they like.
The biggest change to this section of the App Store is that Apple will be accepting search ads from developers.

Schiller said developers have contacted Apple in the past and offered to pay to be part of App Store Collections and other features of the store, but Apple turned them all down.
“Our store is not for sale—that’s not how we handle things,” said Schiller. “We are only going to do this if we can, first and foremost, respect the user and be fair to developers, especially small developers.”
There will only be one ad on the search results page and it will be clearly marked as an ad, according to Schiller. What’s more, the content of the ad will be exactly the same as the content of the app on the App Store. In other words, no spammy ads. Apple will only accept ads from developers in the App Store—they won’t have any third-party product ads in the store.
Schiller said the ads are done through an auction system for the developers. There are no minimums, and there will be no exclusives, so small developers can get in on the action as well. The ad system will roll out as a beta this summer and Apple will be watching to make sure the system is fair for all developers.
In keeping with its focus on privacy, Apple will not track users and will not share data about users ad clicks with developers. Developers will get reports, but no user data. Apple will also not serve ads to people 13 years old or under, if it can determine that from the device.
Developers will be able to sign-up for the search ad beta and there will be no charge to them during the beta period. When it does go live, after the beta period, it will launch in the U.S. first.
Major changes
These are some major changes from the App Store team—more than we’ve seen in years from Apple. It’s a good sign that Apple is focusing so much attention on making the App Store better for developers and customers. We’ll have to see how it all works out in the coming months, but a focus on making things relevant, fair, and easier to use should pay off for Apple, its developers and the customer.
If you have an Apple Watch on your wrist, try this experiment:
- Make sure your Apple Watch is unlocked and paired to your iPhone.
- Unlock your wristband, making sure your Apple Watch stays in contact with your wrist.
- Slide your opposing wrist under your other wrist, then quickly drop your Apple Watch from one wrist to the other.
If you do this quickly enough, your Apple Watch will stay unlocked and you can transfer from one wrist to another.
I was thinking about Apple Pay and the possibility of using Apple Pay via Apple Watch at an ATM. If someone robbed you, took your iPhone, and was able to take your Apple Watch without unlocking it, would they be able to go on an Apple Pay spending spree? Thankfully, Apple Watch has strong security features, and with the right watch bands, you can ensure a snug and comfortable fit that makes it even harder for someone to remove it without your knowledge.
If you have Find My iPhone enabled, that’s a very solvable problem.
My wish list for WWDC is simple. I’d love to see a new MacBook Pro and a significant upgrade to Siri, including a set of developer APIs that would allow a user to use Siri to ask intelligent questions, targeted at a specific app, and would also allow apps to provide context back to Siri to make it easier for the user to ask follow-up questions.
When Apple created AppleScript (System 7, back in 1993), they built a language that knew how to work with the objects of pretty much any app that used a basic programming building block, the Apple event.
AppleScript and Apple events made it easy for developers to make their applications scriptable. A similar mechanism for iOS would give the user the ability to ask a question targeted at a specific app, then ask follow up questions of that same app.
For example, suppose I had an app that managed my grocery list, keeping track of both ingredients and supplies. I might ask Siri a question like:
Hey, Siri, ask Cookster what I need to buy to make chicken casserole.
Siri could translate that into a query about the objects the Cookster app knows about, send it to Cookster, get a response, translate that back into a response for me.
I could follow up with:
Ask Cookster what I need to make twice as much.
This follow-on query would go right to Cookster, which presumably has maintained the context from the previous query and can update the response, back to Siri, and back to me.
This is a simple example, but it shows the value of offloading the burden of context to apps, instead of forcing Siri to know everything.
Just a dream. Go back to what you were doing.