Apple CEO Tim Cook Should Be Replaced, Research Firm Says

3 months ago 13

Research steadfast LightShed partners says Apple should see replacing Tim Cook arsenic CEO, but the alteration is improbable to hap immoderate clip soon.

In a note to clients seen by Bloomberg, analysts Walter Piecyk and Joe Galone accidental that "Apple present needs a product-focused CEO, not 1 centered connected logistics."

Bloomberg notes that Apple shares person "badly lagged" down rivals similar Microsoft and Meta this twelvemonth aft losing crushed successful the contention to present compelling artificial quality features. Apple shares person fallen 16% successful 2025, compared with gains of 25% for Meta and 19% for Microsoft. The enactment added:

Missing connected AI could fundamentally change the company's semipermanent trajectory and quality to turn astatine all. AI volition reshape industries crossed the planetary economy, and Apple risks becoming 1 of its casualties.

It is worthy noting that this year's slump successful Apple shares is simply a comparative blip successful the company's semipermanent show with Cook astatine the helm. Apple shares person gained implicit 1,400% since Cook started arsenic CEO, compared to 430% for the S&P 500.

The comments travel aft Apple announced that Chief Operating Officer Jeff Williams will measurement down from his presumption this month. He volition beryllium replaced by Sabih Khan.

Williams was erstwhile thought to beryllium Cook's astir apt successor. Now, elder vice president of hardware engineering John Ternus is believed to beryllium the frontrunner. LightShed says "‌Tim Cook‌ was the close CEO astatine the clip of his assignment and unquestionably has done a large job," but successful the aftermath of Williams' departure, "it's clip for much disruptive change, not less."

However, Cook is improbable to measurement down anytime soon. In his latest "Power On" newsletter, Bloomberg's Mark Gurman said that "there's nary contiguous successor acceptable to instrumentality the helm. There besides haven't been signs internally that Cook is getting acceptable to permission oregon statesman the process of grooming a replacement."

More significantly, "the committee doesn't consciousness the request to marque a change. Apple's directors are Cook loyalists similar Arthur Levinson, Susan Wagner and Ronald Sugar." Gurman says:

There's nary question Cook bears work for Apple's existent struggles. That includes the company's AI missteps, an aging merchandise lineup, the erosion of its design-focused culture, a decade-long drought of breakthrough mainstream hardware, and its increasing tensions with developers and regulators. But there's besides nary question that the committee inactive sees him arsenic the lone idiosyncratic susceptible of turning things around.

Put simply: No situation is large capable to shingle the board's religion successful Cook.

In fact, Cook's power astatine Apple whitethorn grow. Gurman believes helium could go Apple's chairman, successful summation to his relation arsenic CEO:

Levinson, Apple's longtime chairman, has already surpassed the company's recommended committee status age. So it wouldn't beryllium astonishing to spot Cook yet measurement into that relation himself, arsenic Iger, Dimon, Microsoft Corp.'s Satya Nadella and Cisco Systems Inc.'s Chuck Robbins person done astatine their companies. That would springiness Cook an adjacent tighter grip connected the iPhone maker.

Nevertheless, Apple seemingly recognizes the request for alteration astatine the company. Senior executives specified arsenic services main Eddy Cue person warned that Apple risks becoming the adjacent BlackBerry oregon Nokia if it doesn't accommodate quickly.