Analysis agency LightShed companions says Apple ought to take into account changing Tim Cook as CEO, however the change is unlikely to happen any time quickly.
In a note to clients seen by Bloomberg, analysts Walter Piecyk and Joe Galone say that “Apple now wants a product-focused CEO, not one centered on logistics.”
Bloomberg notes that Apple shares have “badly lagged” behind rivals like Microsoft and Meta this yr after dropping floor within the race to ship compelling synthetic intelligence options. Apple shares have fallen 16% in 2025, in contrast with beneficial properties of 25% for Meta and 19% for Microsoft. The be aware added:
Lacking on AI might basically alter the corporate’s long-term trajectory and skill to develop in any respect. AI will reshape industries throughout the worldwide financial system, and Apple dangers changing into one in every of its casualties.
It’s value noting that this yr’s droop in Apple shares is a comparative blip within the firm’s long-term efficiency with Cook dinner on the helm. Apple shares have gained over 1,400% since Cook dinner began as CEO, in comparison with 430% for the S&P 500.
The feedback come after Apple introduced that Chief Working Officer Jeff Williams will step down from his place this month. He shall be changed by Sabih Khan.
Williams was as soon as considered Cook dinner’s probably successor. Now, senior vice chairman of {hardware} engineering John Ternus is believed to be the frontrunner. LightShed says “Tim Cook dinner was the appropriate CEO on the time of his appointment and unquestionably has executed an amazing job,” however within the wake of Williams’ departure, “it is time for extra disruptive change, not much less.”
Nevertheless, Cook dinner is unlikely to step down anytime quickly. In his gala “Power On” publication, Bloomberg‘s Mark Gurman mentioned that “there isn’t any fast successor able to take the helm. There additionally have not been indicators internally that Cook dinner is on the point of depart or start the method of grooming a substitute.”
Extra considerably, “the board does not really feel the necessity to make a change. Apple’s administrators are Cook dinner loyalists like Arthur Levinson, Susan Wagner and Ronald Sugar.” Gurman says:
There is not any query Cook dinner bears accountability for Apple’s present struggles. That features the corporate’s AI missteps, an getting old product lineup, the erosion of its design-focused tradition, a decade-long drought of breakthrough mainstream {hardware}, and its rising tensions with builders and regulators. However there’s additionally no query that the board nonetheless sees him as the one particular person able to turning issues round.
Put merely: No disaster is sufficiently big to shake the board’s religion in Cook dinner.
The truth is, Cook dinner’s affect at Apple could develop. Gurman believes he might grow to be Apple’s chairman, along with his function as CEO:
Levinson, Apple’s longtime chairman, has already surpassed the corporate’s really helpful board retirement age. So it would not be shocking to see Cook dinner finally step into that function himself, as Iger, Dimon, Microsoft Corp.’s Satya Nadella and Cisco Programs Inc.’s Chuck Robbins have executed at their corporations. That will give Cook dinner an excellent tighter grip on the iPhone maker.
However, Apple apparently acknowledges the necessity for change on the firm. Senior executives corresponding to companies chief Eddy Cue have warned that Apple dangers changing into the following BlackBerry or Nokia if it does not adapt rapidly.
