Ive will leave the tech business later this year but will continue to work with Apple, which will serve as a founding client for his new business, LoveFrom.
Ive is credited as the chief designer behind technology such as the iMac, the iPod and the iPhone.
Jeff Williams, Apple's chief operating officer and leader of the development team behind the iWatch, will now run the design team aided by Evans Hankey, vice president of industrial design, and Alan Dye, vice president of human interface design.
“Jony is a singular figure in the design world and his role in Apple’s revival cannot be overstated, from 1998’s groundbreaking iMac to the iPhone and the unprecedented ambition of Apple Park, where recently he has been putting so much of his energy and care,” said Tim Cook, Apple’s chief executive.
“Apple will continue to benefit from Jony’s talents by working directly with him on exclusive projects, and through the ongoing work of the brilliant and passionate design team he has built. After so many years working closely together, I’m happy that our relationship continues to evolve and I look forward to working with Jony long into the future.”
Ive added: “After nearly 30 years and countless projects, I am most proud of the lasting work we have done to create a design team, process and culture at Apple that is without peer. Today it is stronger, more vibrant and more talented than at any point in Apple’s history.
"The team will certainly thrive under the excellent leadership of Evans, Alan and Jeff, who have been among my closest collaborators. I have the utmost confidence in my designer colleagues at Apple, who remain my closest friends, and I look forward to working with them for many years to come."
This week, it was also revealed that Publicis chief creative office Nick Law was to join Apple as its new vice-president of marcom integration.