Apple Needs 'Product-Focused CEO,' Say Analysts As Tim Cook Faces Heat Over AI Failures And Innovation Slump

Apple Needs 'Product-Focused CEO,' Say Analysts As Tim Cook Faces Heat Over AI Failures And Innovation Slump

Apple Inc. is under mounting pressure to consider a change in leadership as its artificial intelligence (AI) initiatives lag behind those of its competitors. Analysts at LightShed Partners have publicly called for the company to replace CEO Tim Cook, cautioning that Apple risks falling behind in the rapidly evolving tech landscape [2].

Under Tim Cook’s leadership since 2011, Apple’s stock has risen more than 1,400 percent, significantly outpacing the broader S&P 500 index, which has climbed roughly 430 percent over the same period. However, some analysts argue that Cook’s legacy alone does not justify maintaining the status quo. The call for change comes at a time of transition for the company, as Jeff Williams, Apple’s longtime chief operating officer, is set to leave the firm this month [2].

Williams was widely seen as a potential successor to Cook, and his departure is expected to pave the way for significant changes in the company's leadership. Sabih Khan, who has been with Apple for 30 years, will replace Williams. Attention is already shifting to John Ternus, Apple’s Senior Vice President of Hardware Engineering, who has been leading the development of Apple’s key products, such as the iPhone, iPad, and Mac, and may emerge as the top internal candidate to replace Cook [2].

Apple’s slow adoption of generative AI has not gone unnoticed by investors or the broader tech ecosystem. Unlike Microsoft and Google, which have aggressively pushed AI-based tools and alliances, Apple has made only modest efforts in this area. This hesitation is starting to impact the company, as investors and consumers increasingly favor AI-enabled devices that learn, predict, and adjust to user needs [2].

At the 2024 Worldwide Developers Conference, Apple unveiled a set of features called “Apple Intelligence.” However, analysts have noted that these updates were more evolutionary than revolutionary in terms of AI capabilities, falling short of what rivals have offered [2].

While Apple has made significant strides in other areas, such as entering the live sports broadcast market with its acquisition of Formula 1’s American broadcast rights, the company's AI initiatives have been criticized for not keeping pace with competitors [1]. This is particularly concerning given the increasing importance of AI in the tech industry.

The push for Cook to leave has not yet reached the point where it is a common demand among investors or directors, and there is no indication that the CEO intends to step down. However, the note from LightShed is part of an increasing number of criticisms directed at Apple’s direction in the era of accelerated progress in AI [2].

References:
[1] https://www.planetf1.com/news/apple-enters-battle-for-us-formula-1-broadcast-rights-after-f1-the-movie
[2] https://www.ainvest.com/news/apple-faces-pressure-replace-ceo-tim-cook-ai-lag-2507/