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Apple replaces heads of software, retail

Following the launch of their flawed mapping software, Apple's CEO announced the company will replace two top executives, the head of software, responsible for Apple Maps and Siri, as well as the head of retail.

A member of the media uses the map function of iPhone 5 after its introduction during Apple Inc.'s iPhone media event in San Francisco, California September 12. Apple Inc Chief Executive Tim Cook announced Monday the company would replace the head of software, responsible for Apple Maps, as well as the head of retail.

Beck Diefenbach/Reuters/File

October 29, 2012

ÌýInc CEO TimÌýÌýon Monday replaced the heads of its software and retail units in the company's biggest executive shake-up in a decade following embarrassing problems with its new mapping program and unpopular store-related decisions.

Software chief Scott Forstall, who oversaw the launch of the flawedÌýÌýand much criticizedÌýÌývoice-enabled assistant, will leaveÌýÌýnext year.

Forstall, seen as a polarizing figure insideÌý, had been billed as one of the future candidates to take the top job atÌý. He was the executive behind the pannedÌýÌýMaps app that the company announced with much fanfare in summer.

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Ìýsaid in a statement that retail chief John Browett "is leaving," without elaborating; that a search for his replacement is underway; and the retail team would report directly toÌý. Browett had riled up the retail store staff when he reduced the number of employees in his unit.

The departures come a little more than a year intoÌý's tenure as chief executive.ÌýÌýreplaced the lateÌýfounder Steve Jobs, considered one of the best executives of all times by many analysts and investors.

"These changes show thatÌýÌýis stamping his authority on the business,"Ìý, analyst with CCS Insight, said. "Perhaps disappointed with the Maps issues, Forstall became the scapegoat."

Ìýupended the tech industry with the release of itsÌýÌýÌýin 2007. But the company is facing increasing competition from search giant Google, whoseÌýÌýhas become the world's most popular mobile software, as well as from Amazon.com Inc, Microsoft and Samsung.

"Competition is moving much faster to be moreÌý-like," saidÌý, president of technology research and consulting firmÌý. "They're finding they need to streamline the management team in order to get things going faster."

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's launch of its own mapping service in September, when it began selling theÌýÌý5 and rolled out its updatedÌýÌý6 software, led to widespread user complaints, particularly since it replaced the popular Google Inc Maps.

'sÌýÌýalso came under a lot of criticism, including for not providing information on business location, when it was launched last year.

Both the services were introduced with much fanfare by Forstall, who had supervised their development as senior vice president ofÌýÌýsoftware.

The executive changes hand over substantially more responsibility to Eddy Cue, the head of Internet Software and Services who helped create the iTunes music store andÌý. The 23-yearÌýÌýveteran already is in charge of Cloud services and will take onÌýÌýMaps andÌý. Craig Federighi will overseeÌý's mobileÌýsoftware as well as its OS X Mac software,ÌýÌýsaid.

Putting the mobile and personal computer software teams under the same manager could improve operations within the company, particularly as the capabilities and features ofÌýÌýand PCs increasingly converge, said analysts.

"If you have two different heads, you have two different fiefdoms," said BGC Partners analystÌý.

Another executive who will get extra responsibility under the shake-up isÌý,Ìý's head of industrial design, who has played a key role inÌý's success by imbuing its gadgets with a distinct look and feel.

That magic touch could help reinvigorate the look ofÌý's software, which has been criticized by some technology observers, Gillis said.

Shares ofÌý, the world's largest publicly traded company by market value, have declined 14 percent in the past month since reaching a 52-week high of $705.07 in September.

Browett, former CEO of British electronics retailer Dixons, took over as senior vice president ofÌý's retail stores earlier this year, replacing Ron Johnson, who went on to become the CEO of JCPenney.

"I think ultimately they probably discovered that his experience with Dixons didn't translate that well to theÌýstores and he just probably wasn't the right fit," Bajarin ofÌýÌýsaid.

, which described Monday's moves as a way to increase "collaboration" across its hardware, software and services business, said Forstall will serve as an advisor toÌýÌýuntil his departure.

Last weekÌýÌýdelivered a second straight quarter of disappointing financial results, andÌýÌýsales fell short of Wall Street's targets, marring its record of consistently blowing past investors' expectations.