Reports outline two paths for Apple to boost Services revenue; one seen as risky

A separate Bloomberg report cited by 9to5Mac said Apple is also exploring ways to extract more revenue and profit from the App Store. Apple hardware chief John Ternus and services chief Eddy Cue are said to want to raise margins and generate additional recurring revenue from the platform.

The first approach has been welcomed as a natural extension of Apple's existing HomeKit Secure Video effort. The second, however, has drawn sharp criticism. An opinion piece on 9to5Mac argues that squeezing more money from the App Store would be a major mistake, given Apple's dominant position in iPhone app distribution and the regulatory scrutiny it has attracted in many countries.

The article notes that Apple's effective control over iPhone app sales has led to antitrust concerns around the world, since developers must accept the company's terms to reach users. It points out that even in the United States, antitrust legislation has existed since 1890, and dominant companies are expected to avoid abusing their position.

Phil Schiller, who recently stepped down from his role at Apple, reportedly shares this concern. Bloomberg suggests Schiller wanted no part of moves to extract more from the App Store, because such tactics would further irritate developers and governments.

The author of the 9to5Mac piece argues that introducing genuinely innovative services would be far better for Apple. A home security monitoring service could integrate seamlessly with HomeKit and build on Apple's reputation for privacy. Apple is better placed than anyone to combine security hardware and services, the author believes, and should use the same approach for services as it does for hardware: making great products that people want to buy willingly.

No official comment has been reported from Apple regarding either plan.