Apple is making a significant change to its App Store division, largely due to the departure of Matt Fischer, who has 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 happening due to new regulations and increasing pressure from developers. Apple is splitting the App Store team into two separate units: one will handle Apple’s own App Store, while the other will focus on managing alternative app distribution methods. These changes are intended to adapt to emerging market demands and regulatory requirements.

Why is Matt Fischer leaving?

According to a report by Mark Gurman on Bloomberg, Fisher has decided to leave Apple after working there for 21 years. He explained that restructuring and the new challenges facing the App Store played a key 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 a huge part of its business, generating about $20 billion in revenue each year. However, the company is facing new regulations and pressures that are forcing it to change the way it operates.

–Regulatory pressure: New regulations, especially in Europe, are forcing 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.

–Developers’ concerns: Developers are unhappy with Apple’s rules, which they find too strict and costly. The company has faced criticism for taking a large share of sales made through its App Store and not allowing alternative payment options.

What is changing?

–To address these issues, Apple is dividing the App Store team into two distinct groups:
Main App Store Team: This team will manage Apple’s own App Store, where users will be able to download apps directly from Apple.

–Alternative App Distribution Team: This new team will focus on other ways to distribute apps in line with new rules that require Apple to allow multiple app stores and payment methods.

Who is taking charge?

Following Matt Fisher’s departure, two of his senior colleagues are taking on new roles:

–Carson Oliver: He will lead the team responsible for Apple’s own App Store.
–Ann Thai: She will lead a new team that will handle alternative app distribution.

Both will report to Phil Scheeler, the executive who oversees the App Store and is overseeing the reorganization.

What does this mean for Apple?

The restructuring is a major step for Apple, aimed at complying with new regulations and addressing developer concerns. Although the App Store has been a major source of revenue for Apple, these changes reflect the company’s need to keep pace with a rapidly evolving market and regulatory environment.

Apple’s decision to split the App Store team and Fisher’s departure highlight the company’s effort to implement new regulations and adapt to industry demands. As the app market evolves, Apple is making these changes to stay competitive and remain responsive to both regulators and developers.