Apps & Consumer
Phil Schiller's App Store exit was partly a bid to dodge a profit push, Bloomberg reports
Apple's Phil Schiller is stepping down as App Store chief, reportedly to avoid a new profit-margin push by CEO John Ternus and Eddy Cue.
Longtime Apple executive Phil Schiller is stepping down as head of the App Store, a move Bloomberg’s Mark Gurman reports was driven in part by a desire to spend more time with his family and on philanthropy. Schiller will remain at Apple as a fellow working on unspecified projects.
But Gurman reports there was apparently another factor: new CEO John Ternus and services chief Eddy Cue are seeking to improve App Store margins and bring in more recurring revenue. Apple’s management of the App Store, and its share of App Store payments, has long drawn developer criticism and been the subject of major lawsuits.
According to Gurman’s reporting, there wasn’t a big fight over Ternus and Cue’s strategy. But Schiller reportedly believed that squeezing more profit from the business would only increase conflict with governments and developers, so he chose to step down rather than get involved.
Why it matters
A leadership change at the App Store, timed to a push for higher margins, suggests Apple’s services business may lean harder into monetization just as regulators and developers are already contesting its cut of App Store payments.