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Apple will launch paid search for app store

Apple App Store
Scott Mlyn | CNBC

Apple will start showing search ads for apps in its iOS App Store for the first time after previously resisting.

"We've thought about how to carefully do it in a way that, first and foremost, customers will be happy with," Phil Schiller, Apple's senior vice president of worldwide marketing, told The Verge, adding that he believes the ad auction system will be "fair to developers, and fair for indie developers, too."

The search ads will launch in beta next Monday, and will appear at the top of search results surrounded by a blue background and a blue "ad button," according to The Verge. Only one ad will appear at a time, and developers won't have to pay for the ad unless users click on it.

Apple has also said it will not share user data with developers, and that anyone 13 or younger will not see any ads at all, according to The Verge.

Schiller's comments come before the start of Apple's annual developer conference, and during a period of declining revenue for the company. In its most recent quarterly report, Apple disclosed a roughly 13 percent decline in revenue in the comparable year-ago period — representing the first year-over-year quarterly sales drop for the hardware and software giant since 2003.

Over the past year, Apple's stock price has declined by more than 20 percent.

As The Verge noted, there are now four "app stores" run by Apple, and five if you separate the iPhone from iPad: iOS, Mac, TV, and Watch.