Phil Schiller Left Apple’s App Store Over Fears New Strategy Would Anger Developers and Regulators

Quick Facts

• Phil Schiller stepped down from overseeing the App Store after concluding that Apple’s new revenue push would intensify conflicts with developers and governments.
• New CEO John Ternus and services chief Eddy Cue plan to raise App Store margins and grow recurring revenue from the platform, which generates an estimated $30 billion annually.
• The App Store now moves under Eddy Cue’s Services organization, with Carson Oliver managing day-to-day operations.

Phil Schiller left his oversight of the App Store not just to spend more time with family and pursue philanthropy, but because he disagreed with where Apple’s new leadership was taking the platform. Bloomberg’s Mark Gurman, reporting in his Power On newsletter, says Schiller believed Apple’s plans to extract more profit from the App Store would deepen friction with developers and governments worldwide.

Schiller, who has been at Apple for 39 years and took over the App Store in 2015, will remain at the company as an Apple Fellow working on unspecified projects. His departure comes days after John Ternus officially became CEO on September 1, succeeding Tim Cook, who moves to executive chairman after 15 years leading the company.

Under Ternus and services SVP Eddy Cue, Apple wants to raise App Store margins and squeeze additional recurring revenue from the platform. Gurman reports there was no major internal fight over the strategy. Schiller simply concluded that pursuing those goals would increase conflict with regulators and developers, and he chose not to be part of it.

The specific changes Apple may be planning have not been publicly disclosed. But the company already faces serious regulatory exposure. Apple is under a court order stemming from Epic Games’ antitrust lawsuit and was found in contempt for imposing a 27% commission on purchases made through external payment links. That move drew sharp criticism from developers and regulators, with Epic CEO Tim Sweeney calling Apple’s compliance “malicious.”

Apple itself acknowledged the stakes in a Supreme Court filing, stating that “regulators around the world are watching this case to determine what commission rate Apple may charge on covered purchases in huge markets outside the United States.” The U.S. Supreme Court rejected Apple’s bid to temporarily block the court-mandated changes. The Department of Justice has also filed its own antitrust lawsuit against the company.

The App Store now sits inside Apple’s Services organization, led by Cue. Carson Oliver will manage day-to-day operations, overseeing app distribution, third-party marketplaces, and Apple Arcade. Ann Thai, who handles app distribution tools and work with third-party marketplaces, will report to Oliver. Cue previously ran the App Store until 2015, when it was handed to Schiller. His return to the role consolidates Apple’s entire services business under one executive, making him the most powerful leader at Apple outside of Ternus.

Leadership of Apple events moves to Nola Weinstein, who has served as Schiller’s deputy since 2023. Weinstein will report to Kristin Huguet Quayle, Apple’s VP of communications and public relations. The first event under Weinstein’s direction is scheduled for September 9, where Apple is expected to show the iPhone 18 Pro lineup, new Apple Watch models, and its first foldable iPhone.

Cook leaves behind a company with more than 2.5 billion active devices worldwide, a valuation that grew more than tenfold under his tenure, and record revenue and profit figures. His compensation package as executive chairman is set at $47 million. The new leadership team now faces the task of growing App Store revenue while managing mounting legal pressure from courts and regulators in multiple countries.

Read more: Phil Schiller’s App Store exit reportedly driven by wariness over future plans