Angela Ahrendts out as Apple’s Retail Chief

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According to several sources, Angela Ahrendts is out as Apple’s Retail Chief after 5 years of being in the position.

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The departure of Ahrendts, Apple’s top female executive, was a surprise. But it also marks a turning point for the company and its approach to retail. Sales of the iPhone — Apple’s biggest product line — peaked last year, putting more pressure on Cook to find new revenue streams while experimenting with promotional pricing tactics that Ahrendts eschewed.

With smartphone demand stagnating, Apple is building new digital services and subscription businesses that don’t need a large network of retail stores as much as its consumer hardware operations. For the first time, the retail chief will also have other priorities because O’Brien will continue to lead human resources.

When Ahrendts joined Apple in 2014, she brought a luxury focus from her time running designer apparel company Burberry Group Plc. She quickly turned Apple stores into stylish showcases for the company’s high-end devices, including the Watch which was initially marketed as a luxury product, with some models costing more than $10,000.

On Tuesday, Apple said company veteran Deirdre O’Brien will replace Angela Ahrendts, who served in the role for about five years. O’Brien is the first insider tapped to run the Apple division since Ron Johnson opened the first Apple store in 2001 and left a decade later.

Additional resource: Bloomberg.com