Mark Gurman, Bloomberg:

Apple hasn’t refreshed its routers since 2013 following years of frequent updates to match new standards from the wireless industry. The decision to disband the team indicates the company isn’t currently pushing forward with new versions of its routers. An Apple spokeswoman declined to comment on the company’s plans.

And:

Exiting the router business could make Apple’s product ecosystem less sticky. Some features of the AirPort routers, including wireless music playback, require an Apple device like an iPhone or Mac computer. If the company no longer sells wireless routers, some may have a reason to use other phones and PCs.

Not sure I agree with that last point. Somehow I don’t see someone switching out of the Apple ecosystem because of their router.

Combine this program cancellation with the news about Sal Soghoian’s position being eliminated, and it sounds like Apple is doing some beginning of the fiscal year house cleaning.