Mr. Williams was long considered a leading candidate to replace Tim Cook as the company’s next chief executive.

Apple said Jeff Williams, the company's COO, will take on a new role overseeing the company's design team along with the Apple Watch and health initiatives.

Apple Inc. Chief Operating Officer Jeff Williams is retiring as the company’s longtime No. 2, marking a major changing of the guard at an already tumultuous time for the iPhone maker.Williams will step down as COO this month before retiring from the company later in the year,