According to a Bloomberg report, tech titan Apple Inc. (NASDAQ:AAPL) will combine its separate internet services units into a single office environment in an effort to streamline operations and spur faster development.
Apple cloud services teams run by executive Eddy Cue, including Siri, Maps, iCloud, Apple Pay, Apple News and parts of iTunes and Apple Music, will move together into the company’s existing Infinite Loop campus in Cupertino, California, the people said. Currently, most Apple services are developed separately from each other in office parks rented out in other parts of Cupertino and Sunnyvale, California.
The company expects the move to increase productivity in its services segment, hoping it can better compete with Google and Amazon in the cloud:
The current structure contributes to software bugs and slow product development, the people said. Bringing the teams together at a single, dedicated campus is designed to improve growth of the services business and fight competition from Google and Amazon, the people added. They did not want to be identified talking about private Apple plans. Apple declined to comment.
While Apple’s iPhone growth has slowed considerably, its services segment saw nearly 20% growth in the third quarter. The segment is outgrowing other units so quickly that it may even soon surpass Mac and iPad as Apple’s second largest source of revenue.
The internet teams are expected to be grouped together next year as the company’s massive new headquarters, Apple Campus 2, opens after nearly four years of construction.
Apple shares rose $0.61 (+0.54%) to $113.66 in Thursday morning trading. Year-to-date, AAPL has gained 7.88%, versus a 5.49% rise in the benchmark S&P 500 during the same period.