Apple Should Consider Replacing Tim Cook as CEO Amid AI Challenges, LightShed Says

Apple's struggles with AI raise significant risks, according to LightShed Partners, which suggests replacing CEO Tim Cook with a product-focused leader. Analysts Walter Piecyk and Joe Galone argue that Cook's background in logistics is no longer relevant. The company's shares have fallen 16% this year, compared to gains for Microsoft and Meta.

Apple Inc. (AAPL) is facing significant challenges in the realm of artificial intelligence (AI), according to LightShed Partners. The analysts, Walter Piecyk and Joe Galone, suggest that the company should consider replacing CEO Tim Cook with a product-focused leader. This recommendation comes as Apple's struggles with AI raise significant risks for the company [1].

The analysts argue that Cook's background in managing supply chains is no longer relevant in the current technological landscape. They point out that Apple's shares have fallen 16% this year, compared to gains of 25% for Meta Platforms Inc. (META) and 19% for Microsoft Corp. (MSFT) [1]. This slump in Apple shares is a stark contrast to the company's long-term performance under Cook's leadership, which saw shares gain more than 1,400% since his appointment in 2011 [1].

The departure of Chief Operating Officer Jeff Williams, who is being succeeded by Sabih Khan, adds to the speculation about potential changes at the top. Williams had been considered a potential successor to Cook, but John Ternus, Apple's senior vice president of hardware engineering, is now seen as the most likely candidate [1]. The analysts at LightShed suggest that it's time for more disruptive change, not less, in light of Williams' departure [1].

The pressure on Apple is not just limited to its AI capabilities. The company has also been under scrutiny for its production strategy, with Trump administration trade advisor Peter Navarro criticizing Apple CEO Tim Cook for not moving more of its iPhone production outside of China [2, 3]. Navarro argues that Apple's slow progress in relocating its manufacturing facilities is "inconceivable" given the advancements in manufacturing techniques and AI [2, 3].

Despite these challenges, Apple has made efforts to expand its production outside of China, including a $1.5 billion expansion in India. However, the company's stock has continued to face headwinds, slumping 13.88% on a year-to-date basis as of July 2025 [3]. Analysts like Daniel Ives from Wedbush Securities have suggested that Apple should acquire AI search engine Perplexity to bolster its AI strategy, which they believe is a "no brainer" deal [4].

In conclusion, Apple is facing significant challenges in both AI and production strategy. The company's stock has suffered, and there is speculation about potential changes at the top. The future of Apple under these circumstances remains uncertain, but the company's long-term track record under Tim Cook suggests that it has the potential to navigate these challenges successfully.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-09/apple-should-consider-replacing-tim-cook-as-ceo-lightshed-says
[2] https://www.mobileworldlive.com/apple/trump-trade-adviser-criticises-apple-ceo-cook/
[3] https://www.benzinga.com/markets/tech/25/07/46313502/peter-navarro-slams-apple-ceo-tim-cook-over-slow-production-shift-out-of-china-despite-buying-time-since-trumps-first-term-longest-running-soap-opera-in-silicon-valley
[4] https://www.investors.com/news/technology/apple-stock-perplexity-acquisition-called-no-brainer/