Major changes to Apple's executive team surprised investors this week, but market watchers don't believe anything is awry with the company's management.
Gene Munster with Piper Jaffray said the changes announced by Apple on Monday seem to confirm that Jony Ive, the company's acclaimed designer, will be with Apple for the "foreseeable future." He believes Ive's expanded role should put to rest "a recurring investor concern of an Apple without Ive."
"This, combined with Tim Cook's nine years remaining on his contract with Apple, suggests the two most critical management figures will be in place for the longer term," Munster said.
The biggest change at Apple came with the departure of Scott Forstall, the company's former head of iOS software. Reports have indicated that Forstall was forced out for a number of reasons, including dissatisfaction with the new mapping software in iOS 6.
"Apple is consolidating leadership around core long term executives, and the probability that key management is committed to Apple appears to have increased," Munster said.
Brian Marshall of ISI Group also isn't concerned about the departure of Forstall or John Browett, Apple's former retail chief whose short tenure at the company was not well received. While Marshall said he is "disappointed" that Forstall will no longer head Apple's iOS team, it doesn't change his current positive outlook for the company.
"If the company can be successful without Steve Jobs, it can be successful without Scott Forstall," he said.
And Brian White of Topeka Capital Markets believes the changes are a "natural evolution" for Apple as it pushes for more seamless integration across its devices. He sees Apple's management shakeup as a result of the company "pushing for new levels of future innovation."
In the departure of Forstall and Browett, Ive will head up a new Human Interface team at Apple, Eddy Cue will take over responsibility for Siri and Maps, Craig Federighi becomes head of iOS and OS X software, and Bob Mansfield will be in charge of Apple's new Technologies group, which will integrate all of its wireless teams, including semiconductor technologies.
Apple has said that Forstall will remain at Apple in the near term as an advisor to Apple CEO Tim Cook, though the position has been characterized as a "formality" intended to keep him from going to a competitor. A search for a new retail chief is also underway, and in the interim the responsibilities will fall to Cook.
65 Comments
The fact he was head of Dixon's wasn't even the first clue to why he was a bad choice. The fact he was a British manager was the first clue (and I speak as a Brit). British management is some of the worst in the world. Self-replicating, driven by making pointless changes to 'make their mark' and unnecessarily combatative with their staff they have driven British industry into the ground for decades.
the comparisons to Steve Jobs are amazing... when Steve Jobs was ousted at the original Apple he was going to be kept around as an "advisor" but he didn't want too... because he had no power IMO (Just a figurehead with a desk)... As described in Walter Isaacson's book...
Apple still has a ton of momentum. As a Mac / iOS developer, I view this as a chance, a shot in the arm to rejuvenate iOS and push the UI on both operating systems to new levels. I haven't been this excited with Apple in a while.
Note: in before TS posts!!! That's some kind of achievement.
Scott is NO Steve ! Every company changes out personnel when management changes. Either the emps don't like the new management or management has different goals that the emps don't want to follow. You just don't want to keep people who are going to undermine you the entire time. Most of the time they are contracted to stay on for a while during transition to make sure all questions are answered. This is nothing new. The departure of Scott is a great thing for Apple as he was getting too arrogant for his position. Things were not quite coming together (maps). I'm excited about the future of Apple more so then before.
Anyone ever notice Scott was the only individual that ever used a script while presenting? How hard is it to know your product?