According to a report from Business Insider, Apple is restructuring its services division following the departure of Peter Stern, the company’s Vice President of Services.
Stern, who has been with Apple for over six years and was responsible for overseeing various services such as Apple TV+, Sports, iCloud, Apple Fitness+, Books, Apple Arcade, and Apple One, is leaving the company.
Stern had been working closely with Eddy Cue, the Services Chief of Apple, to pursue sports content for Apple TV+ and to manage other key services.
With Stern’s departure, Apple will be reorganizing the services business by splitting the unit and Stern’s responsibilities into three different divisions.
Stern reportedly told his colleagues that he is leaving to spend more time on the East Coast and will be leaving the company at the end of the month. According to Business Insider, Stern was seen as a possible successor to Eddy Cue, who is in charge of Apple’s services division.
The services category is becoming increasingly important for Apple as it supplements device sales. In fiscal 2022, the services division earned $78 billion, a $10 billion increase from the previous year. Recently, Apple increased the prices of both Apple TV+ and Apple Music, due to a growing content catalog and increased licensing costs respectively.
What are your thoughts on this news? Let us know and check back soon for more.
