Phil Schiller's App Store Exit Linked to Revenue Push [Gurman]

Phil Schiller's decision to step away from running the App Store involved concerns about plans to generate more money from the platform, according to Mark Gurman.



In his latest Power On newsletter, Gurman says new CEO John Ternus and services chief Eddy Cue want to increase App Store margins and bring in more recurring revenue. Schiller, however, appears to believe those efforts would further antagonize developers and governments and wanted no part of that direction.


The report describes no internal blowup. At 66, the longtime executive also wanted more time for family and philanthropy after overseeing two demanding operations: the App Store and Apple's product launch events.

Schiller recently handed over those responsibilities, with the store moving to Cue's services division and events passing to Nola Weinstein. He remains an Apple Fellow working on unspecified projects.

The App Store generates an estimated $30 billion annually, and Schiller's responsibilities extended well beyond its commercial performance. He made decisions on controversial app approvals and oversaw changes to policies and revenue-sharing arrangements in response to litigation and regulatory pressure.

Day-to-day management now rests with App Store veteran Carson Oliver, who reports directly to Cue. Apple Arcade also falls under Oliver, while Weinstein reports to communications chief Kristin Huguet Quayle.


Ternus is expected to reshape the executive ranks as several longtime leaders approach retirement, with Cue, finance chief Kevan Parekh, and operations chief Sabih Khan taking on greater responsibility.