Apple iOS chief Scott Forstall to leave company

Apple also says retail head John Browett is leaving

Apple (NASDAQ:AAPL) said that Scott Forstall, the company's senior vice president of iOS software, will leave the company as part of a shakeup of the iPhone maker's executive team.

Apple Scott Forstall

Scott Forstall

In a statement Apple said that Forstall will be leaving Apple next year and will serve as an advisor to CEO Tim Cook in the interim. Additionally, Apple said retail chief John Browett, who joined the company in January, will be leaving. Apple said it is searching for a replacement retail head and that in the meantime the retail organization will report directly to Cook. The changes come just after Apple introduced a wave of new products, including the iPhone 5, fourth-generation iPad and iPad mini.

As part of the changes Jony Ive, Bob Mansfield, Eddy Cue and Craig Federighi will each add more responsibilities to their roles, in effect absorbing some of the roles that Forstall held. Apple said Ive will provide leadership and direction for Human Interface (HI) across the company in addition to his role as the leader of Industrial Design. Cue, who is senior vice president of Internet software and services, will take on the additional responsibility of Siri and Apple's much-maligned Maps service. Federighi will lead both iOS and OS X divisions.

According to reports, Forstall was forced out of Apple due to the troubles in Siri and Apple Maps, products that he oversaw. Specifically, the situation came to a head when Forestall refused to sign the apology letter that Cook posted to Apple's website about Apple's new Maps product.

On top of all those changes, Apple said Bob Mansfield will lead a new group, Technologies, which combines all of Apple's wireless teams across the company in one organization. That group will also include Apple's semiconductor teams.

The changes come less than a week after Apple reported solid fiscal fourth-quarter results, which still managed to disappoint financial analysts. Apple sold 26.9 million iPhones in the quarter, a 58 percent increase from the year-ago period. However, the quarter only represented nine days' worth of sales of the iPhone 5, which went on sale Sept. 21.

Financially, Apple's quarter was strong, even if earnings missed the expectations of Wall Street analysts polled by Thomson Reuters. Apple posted quarterly revenue of $36 billion and a net profit of $8.2 billion, up from $28.3 billion in revenue and a net profit of $6.6 billion in the year-ago quarter. Looking ahead to its fiscal first quarter of 2013, which will include holiday sales of the iPhone and iPad, Apple said it expects revenue of about $52 billion and diluted earnings per share of about $11.75, both of which were below Wall Street's forecasts.

Cook did not seem at all disappointed with the results though. "We're unwilling to cut corners to deliver the best customer experience in the world. ... We're managing the company for the long run and will continue to make good long-term decisions."

Added Cook: "We think it's going to be an incredible holiday season."

For more:
- see this release
- see this AllThingsD article
- see this Fortune article

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