One of Apple's top subscriptions executives is exiting the company.
Peter Stern, who had been helping establish Apple's presence in sports rights in addition to running Apple TV+, has informed colleagues that he is exiting 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 divisions, according to two people familiar with internal conversations at Apple. The shape of the restructure is still being negotiated, but one of those executives will be Oliver Schusser, who is currently in charge of Apple Music; another is Robert Kondrk, whose current title is VP, Apple Product Services and Design.
Stern, who was widely tipped as a possible successor to Apple's SVP Services, Eddy Cue, was in charge of a broad swath of the company's subscription businesses and was largely responsible for building the business operations of Apple TV+. 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+. Before that, he was an exec Time Warner Cable. Colleagues described him as "stone cold brilliant" in a profile written by Insider.
Stern was not immediately available for comment.
Apple's stock has struggled over the past 12 months because of China's strict COVID policies, which have now been eased, and high interest rates. Last year, the company hit a market cap of $3 trillion. Now, it is at about $2.11 trillion. First quarter earnings are out on February 2.
Apple's Services unit revenue continues to grow, as do its total subscriptions. The company generated $19.9 billion in its fiscal 2022 fourth quarter, which ended in September — but that was up just 5% from 2021, versus 26% growth in the period a year earlier. Apple has 900 million subscriber relationships, and total Services revenue of $78 billion, through September 24.
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