Apple App Store with new revenue plan and ads

San Francisco: Apple said yesterday it was revamping its App Store with a new revenue-sharing model for app developers and, for the first time, search-related advertising.

The move comes with Apple seeking to boost its revenue from services amid what appears to be a plateauing of sales of iPhones and a slowdown in the table market.

In a significant shift in its revenue model, Apple said it would reduce its share to 15 per cent from 30 pc for auto-renewed paid apps after the first year.

While Apple will be cutting its longstanding share of 30 pc, the move appears to encourage developers to introduce paid models with the new auto-renew feature.

“Apps in all App Store categories will soon be eligible to offer auto-renewable subscriptions,” said a statement on the App Store website.

“Developers will also receive more revenue for qualifying subscriptions after one year, have greater pricing flexibility, and more.”

Apple also said it would allow app makers to place search-related ads on the App Store, another move that could drive more revenue for the California tech giant.

The new feature to be introduced this year on the US App Store is “an easy way for you to promote your app directly,” according to the website, “helping customers discover or reengage with your app, while respecting their privacy.”

These changes could shake up the so-called app economy worth billions of dollars that includes developers creating programs for Apple’s iOS and the Google Android.