One of Apple’s top strategy executives, Peter Stern has announced his departure at the end of this month. After serving as the VP of Services for six years, Stern will be leaving at a time when the company is restructuring its services division.
Before joining Apple, Stern was an executive at Time Warner Cable. At the company, he directly reported to Eddy Cue, the Senior VP of Services, and was also viewed as his possible successor. He had helped in building subscription services like TV+, News+, Fitness+, iCloud, Apple Arcade, Books, Apple One, and others. Stern was also behind the recent expansion of the Sports catalog for TV+.
Check out Apple TV+ announces the launch of “Friday Night Baseball” in 4 new regions and its September schedule here.
Apple to split services department into three separate divisions
According to Business Insider, Stern told colleagues that he was leaving the company to spend more time on the East Coast in the U.S. He was known as “stone-cold brilliant” by his co-workers.
And the company is going to split Stern’s responsibilities into three separate divisions led by Oliver Schusser who is in charge of Apple Music, Todd Teresi who is the VP of advertising and Robert Kondrk who is the VP of Product Services and Design.
Apple is reorganizing its Services unit and Stern’s responsibilities will be split into three separate divisions, according to two people familiar with internal conversations at Apple. One of those executives will be Oliver Schusser, who is currently in charge of Apple Music.
The company focuses on buildings its services business to boost the sales of its hardware and is a lucrative source of revenue. In Q4, 2022, the tech giant reported $19.2 billion in revenue for Service, a $10 billion increase from $18.2 billion in Q4, 2021.
Apple’s Services unit revenue continues to grow, as do its total subscriptions. The company generated $19.9 billion in its scal 2022 fourth quarter, which ended in September — but that was up just 5% from 2021, versus 26% growth in the period a year earlier. Apple has 900 million subscriber relationships, and total Services revenue of $78 billion, through September 24.
