Longtime Apple executive Phil Schiller has stepped down from his role as head of the App Store, according to reports from Bloomberg’s Mark Gurman. Schiller, who will remain with the company as an Apple Fellow to work on unspecified projects, cited personal reasons including a desire to spend more time with family and focus on philanthropy.
However, Gurman indicates that internal strategic differences also played a significant role in the decision. New CEO John Ternus and services chief Eddy Cue have been pursuing strategies aimed at improving App Store margins and boosting recurring revenue.
The App Store has faced sustained criticism from developers and legal challenges regarding Apple’s management practices and payment fees. According to the report, while there was no major conflict over the proposed strategy, Schiller believed that pushing for higher profits would likely escalate tensions with both regulators and developers, prompting his decision to step away from the division.
Finally, a executive brave enough to prioritize principle over profit. Glad he’s staying for family and philanthropy.
Schiller saw this coming. Chasing margins without easing regulatory pressure is a dangerous game Apple might regret.