Ford lures Apple executive to oversee its new software subscription services unit

abcnews.go.com:

Ford has hired away a key Apple executive to run a new business unit that will sell software-related subscription services to vehicle owners

DETROIT — Ford has hired away a key Apple executive to run a new business unit that will sell software-related subscription services to vehicle owners.

The Dearborn, Michigan, automaker said Monday it hired Peter Stern, who was Apple's vice president of services. He'll be president of Ford Integrated Services, a unit that will combine software and hardware into services.

At Apple, Stern oversaw Apple TV plus, iCloud storage, Apple Books, the arcade and fitness operations and other businesses, Ford said in a statement Monday.

Stern started Monday and reports directly to CEO Jim Farley.

Stern also will expand Ford's BlueCruise hands-free partially automated driving system, as well as productivity and safety and security services, the statement said.

Asked if people are getting tired of paying for subscription services, Stern said people will buy single services and bundles as long as they see the value.

“When we do that right, customers will sign up not only for individual, ala carte services, but I think we'll also create bundles of services that make it really easy for customers to get the most out of their vehicles,” he said.

Stern, who before Apple was Time Warner Cable's chief product officer, said there were worries about whether the company would ever exceed $100 per month in average revenue per user. “That was in the rear view mirror pretty quickly because of the value we delivered,” Stern said.

Also, Stern said that when he started at Apple, it had only two subscription services, iCloud and Apple Music, but when he left there were over 1 billion subscriptions for services.