Apple is reshaping its leadership, restructuring its global affairs and Apple Music divisions to streamline operations and bolster strategic goals. These changes aim to navigate intensifying regulatory pressures and fierce competition in the streaming market.
New Structure for Global Affairs
The tech giant has revamped its global affairs division, which handles government and regulatory issues. Teams overseeing Europe, India, China, and other Asian regions have been realigned to match the U.S. team’s level, ensuring tighter coordination and faster responses to local regulations. This is critical in Europe, where Apple faces €700 million in fines for breaching EU antitrust rules.
Overhaul at Apple Music
Apple Music is undergoing a leadership shake-up, now led by co-heads Rachel Newman and Ole Obermann under Vice President Oliver Schusser. Newman is a long-time Apple veteran, while Obermann joins from TikTok with deep music industry expertise. This dual-leadership model frees Schusser to focus on additional responsibilities, including TV+ and sports initiatives. The restructuring aims to strengthen Apple Music’s position against Spotify’s dominance.
Broader Context of Changes
This shake-up is part of a wider wave of 2025 reorganizations at Apple. The company recently promoted Vanessa Trigub to global retail chief and parted ways with Daniel DiCicco, its retail real estate head, who moved to Louis Vuitton in China. Apple also shifted its secretive robotics division from its AI chief’s oversight, signaling a reprioritization of AI efforts. These moves reflect Apple’s push to adapt to rapidly shifting market dynamics.
Key Challenges Facing Apple
Apple confronts multiple threats that the new structure seeks to address:
- Regulatory Scrutiny: EU fines and potential U.S. antitrust actions inflate costs.
- Competition: Spotify leads streaming, while Chinese rivals challenge iPhone sales.
- Trade Tensions: Trump’s 10% tariffs on India imports, a key iPhone production hub, may raise prices.
- Innovation Lag: Slow AI and robotics progress worries investors.
Market and Investor Reactions
Apple’s stock edged up 0.8% after the announcement, indicating cautious investor confidence. However, Bloomberg analysts warn that the reshuffle may not fully address deeper issues, like declining iPhone sales in China due to Huawei’s competition. Investors expect Apple to bolster its AI and streaming services to maintain a competitive edge, especially ahead of Q2 2025 earnings.
Looking Ahead
The new leadership structure aims to help Apple tackle regulatory and trade challenges, but success hinges on swift adaptation. By 2026, the company plans to shift most U.S.-bound iPhone production to India to mitigate tariff impacts, though logistics hurdles loom. In music, the new co-heads must elevate Apple Music against Spotify. If these changes succeed, Apple could secure steadier growth in an uncertain global landscape.
