Research firm LightShed Partners has suggested that Apple consider replacing Tim Cook as CEO, although a change is not expected to happen in the immediate future. Analysts Walter Piecyk and Joe Galone stated in a recent note to clients that “Apple now needs a product-focused CEO, not one centered on logistics.”
Apple’s stock performance has been notably underwhelming in comparison to competitors like Microsoft and Meta this year. Shares have decreased by 16%, whereas shares for Meta and Microsoft have increased by 25% and 19%, respectively.
The analysts expressed concern that Apple’s failure to keep pace with advancements in artificial intelligence could significantly hinder the company’s growth and long-term viability. Despite this year’s decline in Apple’s share price, it is important to recognize the company’s overall performance under Cook’s leadership, which has seen a rise of over 1,400% since he took the helm, compared to a 430% gain for the S&P 500.
The discussion about leadership comes as Apple prepares for a transition with the departure of Chief Operating Officer Jeff Williams, who is being succeeded by Sabih Khan. Williams was considered a potential successor to Cook, but now senior vice president John Ternus is viewed as the frontrunner.
LightShed acknowledges Cook’s effectiveness but argues that in light of Williams’ exit, “it’s time for more disruptive change, not less.” However, indications suggest that Cook is not going anywhere soon.
Bloomberg’s Mark Gurman noted a lack of a clear successor ready to take over, as well as the absence of any internal signs pointing to Cook’s departure. The board of directors, which remains loyal to Cook, is not pushing for a change in leadership, cementing his position despite the current challenges Apple faces.
Moreover, Cook could potentially expand his influence at Apple by stepping into the role of chairman in the future. As the company looks to navigate its current struggles, executives like services chief Eddy Cue have cautioned that Apple must adapt to avoid becoming obsolete like BlackBerry or Nokia.
Leave a Reply