Apple (AAPL.US) has reorganized its App Store team, with the current manager leaving and the division being split into two teams.
AInvestWednesday, Aug 21, 2024 9:00 pm ET
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Apple Inc. (AAPL.US) App Store head is set to depart, as the division has been under strict regulatory scrutiny amid concerns about its dominance in the mobile software market.

Apple Inc. (AAPL.US) App Store head is set to depart, as the division has been under strict regulatory scrutiny amid concerns about its dominance in the mobile software market.

The division will be split into two teams: one to manage Apple's own app store and another to manage other app distribution.

The changes were made by Phil Schiller, who oversees App Store, in response to regulatory pressure from the government to allow apps to use other stores and payment methods on iPhones, iPads and other company devices.

Carson Oliver, a longtime senior executive, will lead the App Store division, while Ann Thai, who oversees the search and discovery features of the App Store, will lead the new team for alternative distribution.

The App Store business has been under pressure from app developers and regulators in recent years. The company had to adjust its operations to comply with new EU laws as early as 2024. Apple recently changed its commission structure in Europe and opened its devices to third-party markets.

But some developers and the EU have complained that Apple's reforms are not enough. They point out that the company is still seeking to charge fees for apps and subscriptions on its platform, even in third-party stores, in some cases. Changes in the EU and elsewhere have threatened the App Store's role as a growth engine for Apple.

As part of Apple's services business, the App Store division generates about $20 billion in revenue annually. Services have become increasingly important to Apple in recent years, as growth in its main hardware products, including the iPhone, has stalled.

In addition to overseeing the App Store on all of Apple's devices, Mr. Fischer also oversaw the company's Arcade service, a gaming platform launched in 2019.

Meanwhile, Mr. Schiller was named an Apple Fellow in 2020 and stepped down as marketing chief. He also continues to oversee Apple's product launch events.

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