Longtime Apple executive Phil Schiller is stepping down from his role overseeing the App Store and Apple's signature product launch events, according to a report from Bloomberg. Schiller will retain his Apple Fellow title and continue working on unspecified initiatives, the report said. The change marks the end of an era for a figure who helped shape Apple's marketing and app ecosystem for nearly four decades.

Schiller first joined Apple in 1987, eventually becoming the company's head of marketing in 1997. He was instrumental in the launch of the App Store alongside Steve Jobs in 2008, though he only took direct charge of the store in 2015. Over the years, he played a role in the development and presentation of many of Apple's most iconic products, including the iPhone, iPad, iPod, and Macs. His on-stage presence at Apple events became familiar to millions of viewers, often delivering keynotes with a mix of technical detail and enthusiasm.

In recent years, Schiller had already begun stepping back from some responsibilities. In 2020, he handed over the role of senior vice president of marketing to Greg Joswiak. Yet he remained a prominent figure internally, especially in areas related to the App Store and its policies. His latest move further distances him from day-to-day operational leadership, though his continued title as Apple Fellow suggests he may still provide strategic advice on special projects.

What Changes at Apple

The news comes just one day before hardware leader John Ternus is set to take over from Apple CEO Tim Cook, who is stepping down on September 1st. According to Bloomberg, Apple is moving the App Store division under services head Eddy Cue. Carson Oliver will continue to lead the day-to-day operations of the store, with Ann Thai in charge of app distribution tools and third-party marketplaces. This restructuring signals that Apple wants to integrate app distribution more closely with its broader services business, which includes iCloud, Apple Music, Apple TV+, and other subscription products.

Apple did not immediately respond to a request for comment from The Verge. The lack of an official statement leaves some ambiguity about Schiller's future projects, but the phrase "unspecified initiatives" gives room for him to contribute in an advisory capacity without the burdens of managing a large division.

A Career Spanning Decades

Schiller's tenure at Apple is among the longest and most consequential of any current executive. Born in 1960, he joined Apple in 1987 and initially worked in product marketing. He left in the mid-1990s to run a small software startup but returned in 1997, shortly after Steve Jobs's return to Apple. That year, Schiller became the company's head of marketing, playing a key role in the revival of Apple's brand.

He was closely associated with the introduction of the iMac, the iPod, the iPhone, and the iPad. His ability to explain complex technology in accessible terms made him a staple at keynotes, and he was often seen as the bridge between Apple's engineering teams and the public. Schiller's marketing acumen helped establish the now-famous launching style for Apple products, with carefully choreographed events and polished presentations.

One of Schiller's most enduring contributions was his work on the App Store. When the store launched in July 2008, it was a radical idea: a centralized marketplace where third-party developers could distribute software to iPhone users. Over time, the App Store became a massive economic engine, with more than $1.4 trillion in transactions facilitated last year alone. It also became a source of controversy, as Apple's strict control over app distribution and payments drew scrutiny from regulators, lawmakers, and developers.

Legal Battles and Regulatory Pressure

In his role as head of the App Store, Schiller had to navigate an increasingly complex legal and regulatory landscape. Epics Games sued Apple over its 30% commission on in-app purchases, leading to a high-profile trial in 2021. While Apple largely won the case, the judge ordered changes to the App Store rules, including allowing developers to steer users toward alternative payment systems. That decision was later appealed and modified, but the pressure did not let up.

Governments around the world also began to intervene. The European Union's Digital Markets Act required Apple to allow alternative app stores and payment methods on its platforms, leading Apple to open up iOS for the first time in certain regions. South Korea and Japan also passed or considered legislation affecting app store policies. Schiller was directly involved in shaping Apple's response to these pressures, often defending the company's security and privacy rationale for controlling the app ecosystem.

These legal battles have forced Apple to make concessions that would have been unthinkable a decade ago. The App Store's commission structure, once a single 30% fee, now includes reduced rates for smaller developers and multiple models for different types of apps. Schiller's departure does not mean the end of these challenges, but it removes a major figure who was deeply familiar with the store's history and the reasoning behind its design.

Broader Executive Exodus

Schiller's departure is part of a broader executive exodus at Apple that could prove to be one of Ternus's biggest hurdles as he becomes CEO. Former chief financial officer Luca Maestri stepped down from his role in January 2025, followed by the departure of Apple COO Jeff Williams, design chief Alan Dye, and AI head John Giannandrea. Lisa Jackson, Apple's environmental and policy lead, also retired last year. Apple will replace general counsel Kate Adams with former Meta chief legal officer Jennifer Newstead.

This wave of departures means that Ternus will be leading a significantly less experienced executive team. Cook's long tenure provided stability, and his reliance on a tight group of senior vice presidents helped Apple maintain consistent strategy across its hardware, software, and services divisions. Now, many of those leaders are either gone or stepping back.

The App Store transition to Eddy Cue's services division is particularly notable. Cue has been at Apple since 1989 and has overseen services since 2011, when the company introduced iCloud. He has extensive experience managing content and commerce but has not been directly responsible for app distribution until now. The move aligns the App Store with other services businesses, which have become increasingly important to Apple's revenue growth as iPhone upgrades slow.

Implications for Apple's Future

Schiller's exit from day-to-day roles raises questions about Apple's direction in the years ahead. As an Apple Fellow, he may still be involved in product development or strategic decisions, but his influence will no longer be formal. Apple has often relied on senior executives to champion specific initiatives, and losing a figure like Schiller leaves a gap in institutional knowledge.

At the same time, the appointment of John Ternus as CEO signals a focus on hardware and platform integration. Ternus, who led hardware engineering since 2020, oversaw the transition from Intel to Apple Silicon and the development of new product categories like the Vision Pro. His ascension suggests Apple will continue to prioritize its core strengths in device design and performance, rather than pivoting toward a services-first model.

Yet the App Store remains crucial to Apple's financial performance. It is a high-margin business that generates billions in revenue each quarter. The regulatory environment continues to evolve, with new laws and court rulings affecting how apps can be distributed and paid for. Eddy Cue and his team will need to manage these challenges while also fostering innovation in areas like artificial intelligence, which Apple has been slower to embrace than some rivals.

For Schiller, the move may be a natural step before eventual retirement. He is in his mid-60s and has spent most of his adult life at Apple. His legacy is already secure: he helped create the App Store, shaped the modern Apple brand, and presented some of the most iconic products in tech history. Whether he remains a silent elder statesman or takes on a new passion project, his impact on Apple is unlikely to fade quickly.

The coming months will reveal how Apple adjusts to this executive reshuffling. Ternus will need to build trust with investors, employees, and customers while filling the shoes of one of the most successful CEOs in corporate history. Schiller's departure adds to the challenge, but it also creates room for new leaders to emerge. Apple has weathered similar transitions before, and its ability to attract and develop talent may determine whether it can continue to grow in an increasingly competitive technology landscape.

Source: The Verge News