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Will a Leadership Change Be Enough to Turn Apple Around?
AppleApple(US:AAPL) The Motley Foolยท2025-07-13 08:35

Core Viewpoint - Apple is experiencing a leadership change with the retirement of longtime COO Jeff Williams, to be replaced by Sabih Khan, which raises questions about the company's ability to turn around its disappointing stock performance this year [1][2]. Group 1: Leadership Change - Jeff Williams, Apple's COO, is retiring and will be succeeded by Sabih Khan, who has been with the company for 30 years and has served as senior vice president of operations since 2019 [1][4]. - Khan's responsibilities will include managing the supply chain and expanding Apple's customer base, while the design team will report directly to CEO Tim Cook [5]. Group 2: Current Performance - Apple's growth has stagnated over the past two years, with the stock down 16% in 2023, and it has been surpassed by Microsoft and Nvidia in market rankings [2]. - Despite solid revenue and profits, Apple's earnings have been relatively stagnant since 2022, lacking the growth narrative it had in previous years [10]. Group 3: Innovation and Product Development - Historically, Apple was known for its innovative products, such as the iPhone, iPad, and Apple Watch, which drove significant sales [6][7]. - Currently, while new models like the iPhone 16 are being released, groundbreaking innovations are less frequent, leading consumers to hold onto older devices longer [8]. Group 4: Future Outlook - The promotion of Khan may indicate a desire to maintain the status quo rather than pursue aggressive expansion, with concerns about the lack of new ideas in the design team [11]. - Apple is now viewed as a reliable value stock with a forward price-to-earnings ratio of 26.3 and a price-to-sales ratio of 8, along with a growing dividend yield of 0.5%, but its days as a dynamic growth company seem to be over for the time being [12].