Apple will reorganize its $78 billion services unit following the departure of vice president Peter Stern

  • Peter Stern, one of Apple’s top subscription directors, is leaving the company.
  • He reported to SVP Eddy Cue, whose services division was being restructured.
  • In his six years at Apple, Stern helped build the company’s Apple TV+ business operations and sports portfolio.

One of Apple’s top subscription executives is leaving the company.

Peter Stern, who helped establish Apple’s presence in sports rights while running Apple TV+, has informed colleagues that he is leaving Apple to spend more time on the East Coast, according to a source close to the executive. Stern, whose title is VP Services, is leaving at the end of the month.

Apple is reorganizing its services unit, and Stern’s responsibilities will be split into three separate departments, according to two people familiar with internal Apple discussions. The shape of the restructuring is still being negotiated, but one of those executives will be Oliver Schusser, who currently runs Apple Music; the other is Robert Kondrk, whose current title is VP, Apple Product Services and Design.

Stern, who was seen by many as a possible successor to Apple’s SVP of services, Eddy Cue, was in charge of much of the subscription business and was largely responsible for building the Apple TV+ business operations. He is one of about 20 direct reports under Cue.

During his six-year tenure at Apple, Stern helped build subscription products such as Arcade, Books and Apple One, News+, Fitness+, iCloud+. Prior to that, he was CEO of Time Warner Cable. Colleagues described him as “stone-cold brilliant” in a profile written by Insider.

Stern was not immediately available for comment.

Apple shares have struggled over the past 12 months due to China’s strict COVID policies, which have now been eased, and high interest rates. Last year, the company reached a market capitalization of $3 trillion. It now stands at about $2.11 trillion. First quarter earnings will be released on February 2.

Apple’s services unit revenue continues to grow, as do total subscriptions. The company generated $19.9 billion in the fourth quarter of fiscal 2022, which ended in September — but that was an increase of just 5% from 2021, compared with 26% growth in the year-earlier period. Apple has 900 million subscriber relationships and total service revenue of $78 billion as of September 24.

If you have information about Apple, you can contact Claire Atkinson at [email protected] or via Google Voice at 973-544-8309.

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