Plus, for the first time, Apple is planning to show search ads for apps in App Store search results, the company said on Wednesday.

When users install Featured apps, they will no longer be promoted by the App Store.

Apple’s App Store head Phil Schiller previewed the coming changes on Wednesday. They are expected to be officially announced at the company’s WWDC conference, next week.

Apple faces many serious challenges ahead.

Worldwide, smartphone shipments are slowing “dramatically,” according to the latest report from Mary Meeker. Presently a partner at Kleiner Perkins, the famed soothsayer said she expected shipment growth to plummet from 28% in 2015 to just 10% this year.

Likewise, the growth of smartphone users will decline from 31% in 2015 to 21% this year, Meeker predicted.

More to the point, Meeker said she suspected that Apple’s iPhone shipments peaked last year, and its best days are now in the rear-view mirror.

On the bright side, iOS is witnessing a significant rise in app engagement, according to recent findings from analytics firm Localytics.

In fact, the percentage of iOS users only opening an app once fell from 26% to 24%, while the percentage of iOS users returning to an app 11 or more times increased from 32% to 36%.

“One potential reason for this could be the advancements made to the overall app experience on iOS devices,” Caitlin O'Connell, a marketing research analyst at Localytics, speculated.

“From multitasking to split screen to allowing notifications to be presented in chronological order versus grouping them by app, Apple has had a focus on improving the way consumers engage with their favorite apps,” O'Connell added.

Still, Apple remains the most valuable tech company, with a current market valuation of $547 billion, by Meeker’s estimation.