Apple is undergoing a major transformation in its App Store division, highlighted by the departure of Matt Fischer, who led the App Store since 2010. Fischer, a veteran executive, will leave the company in October as part of a broader restructuring. This restructuring is being driven by new regulations and increasing pressure from developers. Apple is splitting the App Store team into two separate units: One will oversee Apple’s own App Store, while the other will focus on managing alternative app distribution methods. These changes are aimed at adapting to evolving market needs and regulatory requirements.
Why is Matt Fischer leaving?
According to a report by Mark Gurman on Bloomberg, Fischer has decided to leave Apple after 21 years. He mentioned that the reorganization and new challenges facing the App Store played a role in his decision. His departure comes at a time when Apple is trying to adapt to significant changes in the app market.
Why is the App Store being restructured?
Apple’s App Store is an important part of its business, generating around $20 billion in revenue annually, but the company is facing new rules and constraints that are forcing it to change the way it does business.
–Regulatory pressure: New regulations, particularly in Europe, are pushing Apple to allow other app stores and payment methods on its devices. This means developers and users may have more options besides Apple’s own app store.
–Developer concerns: Developers are unhappy with Apple’s rules, which they say are too strict and expensive. The company has been criticized for keeping a large percentage of sales made through its App Store and not allowing alternative payment options.
What is changing?
–To address these issues, Apple is splitting the App Store team into two separate groups:
Main App Store Team: This team manages Apple’s own App Store, where users download apps directly from Apple.
–Alternative App Distribution Team: This new team will focus on working on alternative app distribution methods, in line with new regulations requiring Apple to allow different app stores and payment methods.
Who takes over?
With the departure of Matt Fischer, two of his older colleagues are taking on new responsibilities:
–Carson Oliver: He will lead the team responsible for Apple’s own App Store.
–Ann Thai: She will lead the new team that focuses on the distribution of alternative apps.
Both report to Phil Schiller, the chief executive of the App Store who is driving this restructuring.
What does this mean for Apple?
The restructuring is a big step for Apple, aimed at complying with new regulations and addressing developer concerns. While the App Store has been a major source of revenue for Apple, these changes reflect the company’s need to adapt to a rapidly evolving market and regulatory environment.
Apple’s decision to split the App Store team and Fischer’s departure underscore the company’s efforts to adapt to new rules and align with industry demands. As the app market evolves, Apple is making these changes to remain competitive and responsive to the needs of regulators and developers.
