Latest news with #WalterPiecyk
Yahoo
2 days 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
Hindustan Times
6 days ago
- Business
- Hindustan Times
Apple needs a new CEO? Analyst says Tim Cook not the right boss in AI age
There has been long-standing talk of a new Apple CEO taking the helm of the company. Many have discussed who might be next in line after Tim Cook. Now, with this talk already in place, analysts have said that Apple may, in fact, need a new CEO amid the fast-growing AI race. Apple CEO Tim Cook took the helm of the company in 2011.(Reuters) As reported by Bloomberg, analyst Walter Piecyk from LightShed Partners has voiced that a change could be for the better. The analysts made this statement just days after Apple announced that its Chief Financial Officer would be replaced to make way for Indian-origin executive Sabih Khan. This major shift seems to have sparked the debate all over again: does Apple need a new CEO? And where is Apple currently lacking? MOBILE FINDER: iPhone 16 LATEST Price Apple Needs A Product-Focused CEO, Analyst Says Walter Piecyk told Bloomberg in a video interview that while Tim Cook was an incredible CEO for the iPhone era for Apple, the company now needs someone who's 'product-focused.' 'This is to say nothing of Tim Cook being an incredible CEO for what they needed during this iPhone era with logistics. But now, you clearly need someone that can move forward on a lot of the product development,' Piecyk said. Apple Needs To Step Up With AI The analyst also didn't sugar-coat their words when it came to their interpretation of the state of AI at Apple. He said that Apple has missed product cycles, with the big one being AI. 'It's one thing to pull the string on things like Apple TV, which were predicted for years and never happened, or 'Project Titan' which was a much bigger one, which was an autonomous car.' 'Huge opportunity, I think missed, by stopping that program,' Walter Piecyk said. 'AI, in general, not only is a missed revenue opportunity, but if you're not a major player there, and you're one of these large companies like Apple, Google, or whoever, you know, that in itself can disrupt you, " he added. He added that Apple is clearly far behind in the AI race, and that the iPhone maker 'over promised' a year ago and that's being kind to call that over promising. The analyst also called Siri 'not a good service', and labelled it as a 'real risk to the company.' Tim Cook May Not Go Anywhere, Anytime Soon So, while analysts have voiced that Tim Cook needs to go in favour of a product-focused CEO, Bloomberg's Mark Gurman has reported a contrasting view, saying that Tim Cook is not going anywhere, but an Apple shake-up certainly is in line. He says there are currently no signs to suggest that Apple CEO Tim Cook could leave the helm, and he says that the board is not asking him to either. This is despite the fact that Cook's COO, Jeff Williams, is going to retire from his position. The report also adds that most of Cook's direct reports are not that young, and are in their 60s. This is why Apple seems to be overhauling its leadership, with people like Sabih Khan coming into the picture. Having said that, considering many have said that Apple needs a product-focused CEO, people like John Ternus have been thrown into the limelight again to potentially succeed as Apple's next CEO.
Bloomberg
11-07-2025
- Business
- Bloomberg
Apple Should Consider Replacing CEO Cook, Says Piecyk
Walter Piecyk, LightShed Partners partner and tmt analyst, says Apple should consider replacing CEO Tim Cook. He says Apple is missing out on artificial intelligence growth opportunities and needs a more product-focused CEO. Piecyk is on "Bloomberg Surveillance." (Source: Bloomberg)
