Latest news with #TimCook
Yahoo
4 hours ago
- Business
- Yahoo
With all eyes on Apple's next earnings report, one research firm calls on Tim Cook to step aside
Apple's stock is on a downward slide this year and investors are looking for signs of a turnaround during its upcoming July earnings call. Some market watchers have called out the company's AI efforts as half-baked, and one research firm called for Tim Cook to step aside, despite a historically strong track record. As Apple's stock trades down double digits since the start of the year, market onlookers are hoping its next earnings call will show strength and dispel doubts about Tim Cook's leadership. The iPhone maker has faced pressure across the board since the start of the year, especially as President Donald Trump's tariffs threaten its Asia supply chain. At the same time, some have claimed the company has fallen behind in the accelerating AI race, and may need to execute an uncharacteristically massive acquisition to catch up. Amid all those obstacles, Apple's stock is down about 16% year-to-date. And research firm LightShed Partners suggested in a recent note to clients that the company's woes, in AI especially, mean Apple needs a shakeup at the top. 'Apple now needs a product-focused CEO, not one centered on logistics. Apple has 'pulled the string' on too many product categories, only to see them fall short of meaningful scale, or fail to materialize entirely,' wrote LightShed analysts Walter Piecyk and Joe Galone. 'But AI is not something that Apple can merely 'pull the string' on. Missing on AI could fundamentally alter the company's long-term trajectory and ability to grow at all.' The analysts' comments come in the wake of Apple's annual WWDC, which Wedbush analyst Dan Ives called 'a snoozer' which barely mentioned AI. The LightShed analysts noted that it would be kind to say Apple overpromised and underdelivered on its AI promises from last year to this year. 'Apple was nowhere with AI then, and little has changed since,' the note read. Ives of Wedbush has called for Apple to acquire the AI web search startup Perplexity in order to gain a foothold in the AI race. Still, Apple, in the tradition of cofounder Steve Jobs, has mostly preferred to build products in-house rather than acquire. Apple did not immediately respond to Fortune's request for comment. Despite the company's issues, calls for Tim Cook to step aside may be premature, others have claimed, given his past success in elevating the company's stock price by nearly 1500% over his decade-plus tenure. Thanks in part to his background in logistics, the Apple CEO also revamped the company's supply chains to achieve higher margins and grew its net income to about $100 billion at its peak, from $25.9 billion at the start of his tenure. Other market onlookers, including Melissa Otto, the head of research at S&P Global Visible Alpha, say the company's upcoming earnings on July 31, are Apple's chance to demonstrate a turnaround. If Apple is no longer going to deliver the same kind of growth investors have been used to in its core devices business, it will need to show the potential of another category. This lifeline could come in the form of Apple's growing services business, which includes iCloud, App Store purchase fees, and advertising. During its second quarter, Apple's year-over-year services growth grew by double digits to about $26.6 billion, which—while still short of the $68.7 billion brought in by its products—made up a growing chunk of its revenue. Services revenue came in at $96.1 billion as of the company's last annual report, up from $85.2 billion in fiscal 2023, and analysts project it will continue to grow by year's end. The question now, said Otto, is whether Apple can take advantage of the high-margin services business to really drive revenue growth. 'I think if they can continue to outpace expectations around the services business, we may start to see additional incremental positive sentiment come into the stock; however, if they don't, that does leave a lot of open questions about what's next for them,' Otto told Fortune. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 hours ago
- Business
- Yahoo
Apple Drops $500M to Source Rare Earth Materials From U.S. Supplier
Apple (AAPL, Financials) is investing $500 million to secure rare earth magnets from MP Materials (MP, Financials), doubling down on its U.S. supply chain as pressure mounts from President Donald Trump to bring iPhone production stateside. The deal, announced Tuesday, includes direct material sourcing and a new recycling facility in California to process rare earth elements for future Apple products. Apple said the move will help power hundreds of millions of devices beginning in 2027 while creating new magnet manufacturing jobs in Fort Worth, Texas. CEO Tim Cook called the partnership a win for American innovation, noting that rare earth materials are vital to modern tech. This will help strengthen the supply of these vital materials here in the United States, he said in a statement. While the investment supports Apple's sustainability push the iPhone 16e already uses 30% recycled content it also strategically aligns with Trump's insistence on U.S.-made iPhones. Trump recently posted that a 25% tariff could apply if iPhones continue being made in India or other countries. MP Materials currently operates the only U.S.-based rare earth mine, but China still controls over 90% of global rare earth processing. The agreement is expected to reduce some of Apple's long-standing dependency on Chinese supply chains. The rare earths are used in a wide range of Apple devices from magnets in AirPods to components in iPhones and Macs. Both companies will also launch a workforce training program for magnet manufacturing, addressing America's talent gap in advanced hardware assembly. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
News18
9 hours ago
- Business
- News18
Will Tim Cook Resign In 2025? Apple's Next CEO Could Be A Surprise Pick
In 2025, Apple faces slumping sales in China and lagging AI efforts, sparking speculation about CEO Tim Cook's future 2025 hasn't been kind to Apple. Sales are slumping in China, the company's AI efforts are lagging behind rivals, and investors are beginning to get antsy. Whispers about CEO Tim Cook stepping down have only grown louder. But according to a detailed report from Bloomberg's Mark Gurman, there's one thing the tech giant isn't planning just yet, i.e. replacing Tim Cook. At 64, Cook is still firmly in control. He'll turn 65 in November and, by all indications, could lead Apple for at least five more years. That would take his tenure well into his 70s, similar to other corporate mainstays like Bob Iger at Disney or Jamie Dimon at JPMorgan Chase. Gurman notes that even as Apple wrestles with a shaky innovation pipeline and a rapidly shifting tech landscape, the board isn't looking for an exit strategy. Cook has delivered a 1,500% increase in Apple's market cap since taking over from Steve Jobs in 2011. That kind of track record buys loyalty. But while Cook isn't going anywhere, his leadership bench is thinning fast. Apple's longtime COO Jeff Williams, widely seen as Cook's natural successor, is retiring later this year. That alone would be a major shake-up. But he's just the beginning. Half of Cook's roughly 20 direct reports are now in their 60s. Chief Financial Officer Luca Maestri is in the process of stepping down. Hardware veteran Dan Riccio is already out. Marketing head Greg Joswiak, chip chief Johny Srouji, and services boss Eddy Cue are all nearing retirement age. Sabih Khan, Apple's supply chain lead, is expected to take over the COO title. But insiders aren't convinced he's being groomed for the top job. Same goes for Apple's new CFO Kevan Parekh, who's managing a range of responsibilities but isn't seen as CEO material. That leaves one internal candidate who checks most of the right boxes: John Ternus. At 50, Apple's hardware lead has been shaping the company's product portfolio for over a decade. He's known internally as the 'product guy", a fitting label for a company that built its empire on industrial design and customer obsession. But there's a catch: Ternus lacks experience in finance and operations. If he's to take over, he'll need a strong support system or some serious fast-tracking. Despite looming retirements, Apple hasn't begun formally training or preparing any one person to take the CEO seat. Instead, what's happening is a gradual reshuffling of responsibilities under Cook's watchful eye. Sabih Khan is expanding his portfolio to include AppleCare. Fitness+ has been moved under the Services group. Health hardware and watchOS now report to software head Craig Federighi. Even Apple's famously siloed design teams are being restructured to report directly to Cook, a throwback to the Jobs era. Meanwhile, the Vision Pro team is being broken up and spread across hardware and software. And Apple's China business, increasingly volatile in a tight regulatory environment, will now be overseen directly by Cook and Khan. These moves aren't just about operational efficiency; they're a quiet admission that Apple needs to hit reset before things start to spiral. Cue reportedly warned internally that without major change, Apple risks ending up like BlackBerry or Nokia. Could a Surprise CEO Come From Outside? There's always a long-shot possibility of a radical move, like acquiring a major AI startup and installing its founder as a future CEO. But that's not Apple's style. The company has historically avoided big, splashy M&A. Betting the future of the company on someone outside the Apple ecosystem would break with everything the board and Cook have done for the past decade. Adding to speculation about Cook's long-term grip is the fact that Apple's chairman, Arthur Levinson, has already passed the company's recommended board retirement age. If he steps down, some believe Cook could take on that role as well, consolidating power even further. That would echo moves by Iger at Disney or Nadella at Microsoft. Despite the recent turbulence, Cook's personal finances remain rock solid. In 2024, he took home a compensation package worth around Rs 610 crore ($73 million), with the bulk coming from stock awards. His base salary? Just $30. According to Forbes, his net worth sits at $2.4 billion (over Rs 20,000 crore) as of March 2025. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
16 hours ago
- Business
- Time of India
What's ‘troubling' Apple, top economist says: CEO Tim Cook 'figuring out whether to build a factory in India or China'
Apple CEO Tim Cook is reportedly spending more time navigating through the political landscapes than working on innovation, said University of Michigan economist Justin Wolfers. The economist believes that the Cupertino-based tech giant has shifted its priorities under the pressure of US President Donald Trump. Wolfers stressed that the era of trade and tariffs have alerted the corporate priorities, pushing political appeasement ahead of innovation. Economist Justin Wolfers reveals what's troubling Apple Speaking on the Contrarian podcast, Wolfers claims that Apple CEO Tim Cook's most important task at hand is ti 'keep Trump happy' as Apple is facing a lot of pressure over its global manufacturing strategy. 'Steve Jobs was focused on making the greatest phone ever made,' Wolfers said. 'Tim Cook is figuring out whether to build a factory in India or China—and how visible he needs to be at Mar-a-Lago'. Wolfers also criticised the practice of corny capitalism which is on a rise. In corny capitalism the CEOs are either rewarded or punished based on their relationship with the political leaders. He also emphasised that the early tariff exemptions given to automakers is a clear evidence of this favourable practice. "This is not just bad economics," Wolfers concluded, adding that it creates "a system where innovation takes a back seat to political favoritism." Another economist Craig Shapiro also raised the some concerns. Shapiro suggested earlier that US President Donald Trump is running the American economy "like a mafia don,'. He claimed major companies, including Apple, were summoned to seek exemptions and support, calling the resulting $500 billion investment pledge 'state-imposed capitalism'. These remarks came at a time when Apple is planning to diversify its supply chain away from China, with plans to ramp up production in India. However, Trump has publicly opposed Apple's India expansion. Apple's India manufacturing push faces major setback In related news, Apple's biggest iPhone supplier Foxconn recently asked hundreds of Chinese engineers and technicians to return home from its iPhone factories in India, with the Indian government being informed of the staff withdrawal without being provided specific reasons for the move. The departure of Chinese technical staff will slow down the training of local workforce and the transfer of manufacturing technology from China, likely raising production costs and affecting efficiency on iPhone assembly lines. According to Bloomberg, the timing is particularly challenging as Apple prepares to ramp up production of the new iPhone 17 with its manufacturing partners in India. The move appears linked to Beijing's broader strategy to curb technology transfers and equipment exports to India and Southeast Asia. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Yahoo
18 hours ago
- Business
- Yahoo
The attacks on Tim Cook are half-baked—despite Apple stumbling over AI
Apple received an unwanted spotlight last week when President Trump's trade advisor, Peter Navarro, attacked CEO Tim Cook for not moving manufacturing out of China fast enough. In fact, having received similar pressure during Trump's first term, Apple, in terms of what it sells in the U.S., now makes most iPhones in India and most laptops, AirPods, and other devices in Vietnam. Furthermore, Cook has committed over $500 billion to new U.S. manufacturing facilities and design centers that will employ about 20,000 Americans. Nevertheless, by late last week attention had quickly shifted to Cook's tenure as CEO. Part of this may be seasonal. There is often debate during the hot midsummer months—after annual shareholder meetings—over whether CEO is turnover increasing or decreasing. CNBC anchor Carl Quintanilla has said that one factor behind this is an effort to create headlines during the 'tape slump' of major business news. He suggested this behavior was behind a recent report by respected analysts Walter Piecyk and Joe Galone at Lightshed calling for Apple to consider replacing Cook amidst Apple's struggles with artificial intelligence. We believe that such short-sighted attacks on an icon of American industry could not be more misguided. Cook's leadership is still critically needed at Apple. Apple and AI While Apple hasn't been a first mover in AI, it doesn't need to be. In fact, it might benefit the company to not get sucked into the AI arms race amidst counterproductive and desperate moves from competitors—consider Meta offering cash bonuses of up to $100 million to poach AI engineers from rivals. At our Yale CEO Summit last month, nearly 50% of CEOs polled believe that AI hype has already led to significant overinvestment within their companies. An equal proportion think that AI investments have been allocated inefficiently and profess disappointment with the return on investment. While nobody doubts the importance of AI to Apple's future, a critical management skill is finding the right balance on the make vs. buy tradeoff. Developing products in-house is not the only way to go. Despite Apple's setbacks with Apple Intelligence, a potential partnership or outright acquisition of Perplexity could transform Apple into an AI leader practically overnight, as noted by many savvy analysts, including Wedbush's Dan Ives. There are many examples of companies successfully buying or partnering their way into new products or business lines: IBM's visionary acquisition of RedHat in 2019 gave it a foothold in cloud computing—now a core business. Pfizer's partnership with BioNTech during the pandemic allowed for the rapid production of the COVID vaccine. Merck's acquisition of Schering-Plough brought in the blockbuster cancer drug Keytruda, which now powers about half of its sales. Transforming Apple Despite Apple's AI stumbles, Cook deserves a long leash as one of the most revered chief executives of our time, with an unparalleled track record of accomplishment. A genuine tech visionary, he faced the daunting and unenviable task of succeeding the larger-than-life Steve Jobs. He assumed the reins with a rare blend of energy and humility, inspiring others to innovate without any personal grandiosity, transforming Apple into the world's most valuable company. Under Cook's stewardship, Apple's market value has soared from $350 billion in 2011 to more than $3 trillion today. Apple became the first U.S. company to achieve a $1 trillion market capitalization in 2018, doubling that figure in 2020 and tripling it just three years later. Despite the echo-chamber accusations that Cook is nothing more than a supply chain guru and not a true product visionary, the truth is that Cook's tenure has seen Apple revolutionize its product lineup, driving profound advancements for the iPhone, Mac, and iPad and introducing industry-leading devices such as the Apple Watch, AirPods, and Apple Vision Pro. His leadership has also expanded the Apple ecosystem, launching services like Apple Pay, which is growing every year, as well as Apple Music and Apple TV+. Despite this unparalleled record of achievement, even supporters of Cook wonder if he may have lost his touch or his creativity. Though strongly supporting Cook, CNBC anchor David Faber wondered aloud, 'sometimes, as people get older, they may not be taking in as much information, or their expertise may be in an area that is no longer as specific to needs of their business, and I'm curious as to whether there is somebody else out there who might be in a better position to do that.' Long leadership The first author of this essay has closely studied age and work—once called industrial gerontology—since the founding of the field decades ago, and my book The Hero's Farewell: What Happens when CEOs Retire provided the first empirical studies of leaders in late career. There is no correspondence between age and invention, or age and leadership. Over 45 years of research on age and work, I have closely documented the effects of age and found potentially surprising results. Older workers tend to have greater sales skills and interpersonal savvy, with only modest declines in physical dexterity. Research on age and risk in engineering found that older managers were only mildly less willing to take risks. They took longer to make decisions, but they were better able to appreciate the value of new information. Consider some of the startling examples through history. Benjamin Franklin helped draft the Declaration of Independence at 70, invented bifocal glasses in his late 70s, and negotiated an agreement to salvage the Constitutional Convention at 81. France relied upon Charles De Gaulle to unify the nation while he was in his late sixties and seventies. Averell Harriman, after leading Union Pacific and Brown Brothers Harriman, served as one of America's greatest diplomats, unofficially advising presidents until his nineties. Compared to these examples, at age 64, Cook is just getting started. Of course, that doesn't mean there aren't some steps Cook can take to strengthen Apple's positioning, even beyond doubling down on AI development. As CNBC's Jim Cramer pointed out, it would not hurt with the Trump administration if Apple accelerated some of its $500 billion commitment for domestic manufacturing. Moving some spending forward and accelerating that planned four-year timeline would be a tangible political and patriotic signal to rectify Trump's fears that he is being played via delays and long timeframes. Similarly, it may not hurt Apple to add a respected technologist with AI, software, or hardware expertise to its board. But clearly, Apple has stayed ripe for growth and product innovation under Cook, and the attacks on him and the company are half-baked. The opinions expressed in commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune. Read more: Apple CEO Tim Cook has created more shareholder value than Steve Jobs. But suddenly his weaknesses are on display in the AI era Don't count out Apple in the 'AI race': It might be in the best position of all Apple's AI efforts 'have struck midnight,' and the only way it can stop getting further behind is acquiring Perplexity, analyst Dan Ives says Apple is facing a 'fork in the road year' on AI, but has one clear advantage, analysts say This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
