Get Ready For App Store 2.0

Disruptive Changes

In a rare pre-WWDC interview of Phil Schiller with the Verge, Schiller has reportedly made big claims about the changes that will be introduced in the upcoming WWDC which kicks off on Monday.

Developers and users should get ready for the biggest update for the biggest update to App Store since the introduction to App Store, Schiller stated.

Basically, The major changes are in favour for developers, For those of you who don’t know – Apple currently takes 30% commission from all sales that developers make from their apps. In the new App Store that will be released next week, While the 70/30 split will remain, Apple will introduce subscription models catering to different updates of the same app. If a developer is able to retain a customer for an year, The the 70/30 split will convert to 85/15 split, With the developer earning 15% more.

Another major change is that these subscriptions will not be limited to some apps like Spotify, Netflix etc. but rather Apple will be going big and opening this for every application including games. Now, Games is the single biggest category of apps and have been since the introduction of App Store, but starting with App Store 2.0, Developers can start adding DLC content just like in consoles or PCs to subscribed users which can potentially disrupt the entire mobile gaming category , yet again.

“If the new subscription model becomes widely adopted, it will represent a fundamental shift in the economics of the App Store. Developers will be incentivized to sell their apps for a recurring fee instead of a one-time cost. It could change the way consumers pay for certain apps, but it also presents a massive opportunity for developers, many of whom feel the app economy has become moribund in recent years. And as iPhone sales growth slows, a move to app subscriptions is another way for Apple to wring more profits from its existing user base.” writes The Verge who interviewed Phil Schiller.

Revamping Search

The new App Store is also revamping search from the ground-up. The new Search will be totally new and will be categorised according to your needs. For example, If you are interested in Pokemon games then you will directly go to the search bar and type in “Pokemon”, What happens currently is that you will get a plethora of results out of which many may or may not be games but now what you can do is search “Pokemon” and then click on categories and click on games and App Store will sort the results for you.

Due to the saturation of App Store in the recent years, Many Indie developers have complained that the big players are heavily dominating the marketplace, by spending a huge amount on advertisements and ASO (App Store Optimisation), The new search claims schiller will change this by ranking according to not only downloads but the sheer quality of the app too.

One another major change is the introduction of ads, No, Not the typical annoying ads but rather the ads will be either apps featured by Apple that cater to your search results or an app that entirely matches your search and is featured by the developer by paying some amount.

Why This Sudden Move And Privacy?!

When asked as to why the sudden changes in the very fundamental model of the App Store, Schiller said “We’re trying to protect the customer from surprises in pricing”.The App Store will also have a revamped interface to make it “even easier for [users] to manage subscriptions,” he adds.

Also, He made sure that no user data will be compromised to the companies or developers that are introducing the subscription model, Nor will any behavioural statistic be collected of the user interaction with ads.

Schiller also added that the company has been brainstorming for years whether small banner, chart-based or interstitial ads should be introduced, but was quick to add that the answer has been a straight no and will continue to be, They don’t want App Store to be a messed up money making machine.

Conclusion

Even with a new interface of the App Store 2.0, whether or not people will want to cough up monthly fees for apps or manage more subscription services is to be seen. In short, a subscription-based model might be Apple’s best solution for making the entire app ecosystem more sustainable, but as with almost all changes to purchasing models, the buyer has to want to opt-in, too.

What we are pretty sure of though is that we can expect major changes coming with iOS 10 and this new App Store is just the beginning.