Tim Cook in trouble

Faced with challenges in the AI field, some analysts say Apple should boldly replace CEO Tim Cook.

CEO Tim Cook is under great pressure. Recently, two analysts have attracted attention by calling for a major restructuring at Apple. The goal is to replace Tim Cook, who succeeded Steve Jobs from 2011 to the present.

In a paper for technology research firm LightShed Partners, analysts Walter Piecyk and Joe Galone question whether Cook is still fit to lead one of the world's most valuable companies.

According to CNN , the question is being asked at a time when Apple is lagging behind in the field of AI, a technology that is changing many aspects of life. Apple is also facing pressure to create new breakthrough products in the context of slowing smartphone sales.

“Apple now needs a product-focused CEO, not a logistics guy,” Piecyk and Galone stressed.

Difficulties surround Apple

Replacing Tim Cook would be a risky move for Apple. The company is undergoing a number of changes at the top, and a CEO change could throw its core business off course.

According to Bloomberg analyst Mark Gurman, Apple's board of directors remains supportive of Cook, saying he has "the same staying power as prominent industry leaders," such as Disney's Bob Iger and JPMorgan Chase's Jamie Dimon.

There’s no evidence that Cook is leaving. LightShed’s article is just one perspective among many analysts who follow Apple’s business. Piecyk and Galone aren’t the only ones concerned about the company’s future, though.

“He’s a supply chain expert. But Apple needs someone with a technology vision. I think they’re in more trouble than they think,” said Ted Mortonson, CEO and technology strategist at financial services firm Baird.

Space inside the Apple Store in New York (USA). Photo: Bloomberg .

Apple has faced a lot of pressure since the beginning of the year, including tariff threats from US President Donald Trump, troubles surrounding the App Store from the European Union (EU), and a lawsuit over alleged monopoly in the smartphone market. However, the biggest concern remains the slow progress in the AI development department.

In March, Apple confirmed it was delaying a new version of Siri, an upgrade that would have brought the assistant closer to ChatGPT and Gemini. Then, Senior Vice President of Software Engineering Craig Federighi said only that the product “needs more time to meet the company’s high quality standards.”

Not only Siri, analysts believe that Apple still has not had many achievements in the field of AI, according to CEO Ben Bajarin from Creative Strategies.

Despite delaying the Siri update, Apple still introduced AI features at WWDC 2025 such as live translation, sports analysis on Apple Watch, and upgrades to some existing features. However, that only helped the company catch up with competitors, not take the lead.

WWDC 2025 took place in June at Apple headquarters. Photo: Bloomberg .

“Cook has done a great job of getting Apple to where it is now, but the landscape has changed. They’re really struggling in AI. It’s a completely different space because AI is software, whereas Apple has traditionally been hardware-focused,” said Thomas Martin, a partner at investment firm Globalt.

Under Tim Cook, some of Apple's high-profile products and projects have fallen short of expectations, such as the $3,500 Vision Pro glasses, which failed to sell, while the electric car project was canceled.

Apple has made some significant changes to its leadership. CFO Luca Maestri was replaced earlier this year, though he remains VP of Enterprise Services. The company recently announced that COO Jeff Williams will retire at the end of the year.

Oversized "shoes"

Cook, 64, has been Apple CEO for nearly 14 years and is highly regarded for his operational acumen. He has emerged from the shadow of Steve Jobs to build a global supply chain and an ecosystem of products and services that have helped Apple maintain its position as the world's most valuable company.

Cook also helped Apple make its mark in the digital health space with the Apple Watch. The bitten Apple is currently the leader in the smart wearables market (including AirPods and Apple Watch), with a market share of nearly 25% in the fourth quarter of 2024, according to IDC .

Under Tim Cook, Apple's market capitalization has grown from over $342 billion (in 2011) to around $3 trillion . Even two analysts from LightShed Partners admit that Cook "has done a great job."

“It is clear that Tim Cook was the right CEO at the time he was appointed, and he has certainly done a good job,” analysts said.

Tim Cook stands next to Apple Vision Pro glasses. Photo: Bloomberg .

Still, continuing to change the leadership could hamper Apple’s AI development plans. Replacing Tim Cook is not the optimal solution, according to CFRA Research analyst Angelo Zino.

“I think the last thing you want to do is add to the chaos by putting Cook’s job in jeopardy. I don’t think Apple is considering that,” Zino added.

Instead of firing Tim Cook, Apple could address its AI woes with acquisitions, Zino said. Rumors say the company is in talks to buy startup Perplexity AI, is considering deepening its partnership with OpenAI, or is following in Meta’s footsteps by hiring top researchers.

Choose wisely

William Klepper, director of the leadership training program at Columbia Business School, said it's rare for a company to keep a person in the CEO position for more than 10 years.

“Organizations go up and down. That’s the nature of the business cycle. Apple’s current position is static,” Klepper said.

According to experts, 10 years is not a random number. This often coincides with a number of factors that can impact a company's business model, in this case, AI.

In that era, companies like Apple needed to support their core business while constantly adapting to change.

“According to my research and model, you need a change agent because you have to start the second wave... You can't continue to be an executive when the business is at a point of transition, and needs change,” Klepper added.

Apple Vision Pro glasses. Photo: New York Times .

Harvard professor Sandra Sucher says companies typically appoint new CEOs for three reasons: to deal with scandal, to overcome a crisis, or to lose confidence in their abilities. None of these factors are currently happening with Tim Cook and Apple.

But the pressure on Apple is mounting, and the company needs to find answers and act quickly.

“Will Apple become the next Intel?” Thomas Martin asked, referring to the once-leading US chip company that has fallen behind AMD and Nvidia by missing new waves of technology.

Source: https://znews.vn/tinh-the-kho-khan-voi-tim-cook-post1569726.html