Research firm LightShed partners says Apple should consider replacing Tim Cook as CEO, but the change is unlikely to occur any time soon.
In a note to clients seen by Bloomberg, analysts Walter Piecyk and Joe Galone say that "Apple now needs a product-focused CEO, not one centered on logistics."
Bloomberg notes that Apple shares have "badly lagged" behind rivals like Microsoft and Meta this year after losing ground in the race to deliver compelling artificial intelligence features. Apple shares have fallen 16% in 2025, compared with gains of 25% for Meta and 19% for Microsoft. The note added:
Missing on AI could fundamentally alter the company's long-term trajectory and ability to grow at all. AI will reshape industries across the global economy, and Apple risks becoming one of its casualties.
It is worth noting that this year's slump in Apple shares is a comparative blip in the company's long-term performance with Cook at the helm. Apple shares have gained over 1,400% since Cook started as CEO, compared to 430% for the S&P 500.
The comments come after Apple announced that Chief Operating Officer Jeff Williams will step down from his position this month. He will be replaced by Sabih Khan.
Williams was once thought to be Cook's most likely successor. Now, senior vice president of hardware engineering John Ternus is believed to be the frontrunner. LightShed says "Tim Cook was the right CEO at the time of his appointment and unquestionably has done a great job," but in the wake of Williams' departure, "it's time for more disruptive change, not less."
However, Cook is unlikely to step down anytime soon. In his latest "Power On" newsletter, Bloomberg's Mark Gurman said that "there's no immediate successor ready to take the helm. There also haven't been signs internally that Cook is getting ready to leave or begin the process of grooming a replacement."
More significantly, "the board doesn't feel the need to make a change. Apple's directors are Cook loyalists like Arthur Levinson, Susan Wagner and Ronald Sugar." Gurman says:
There's no question Cook bears responsibility for Apple's current struggles. That includes the company's AI missteps, an aging product lineup, the erosion of its design-focused culture, a decade-long drought of breakthrough mainstream hardware, and its growing tensions with developers and regulators. But there's also no question that the board still sees him as the only person capable of turning things around.
Put simply: No crisis is big enough to shake the board's faith in Cook.
In fact, Cook's influence at Apple may grow. Gurman believes he could become Apple's chairman, in addition to his role as CEO:
Levinson, Apple's longtime chairman, has already surpassed the company's recommended board retirement age. So it wouldn't be surprising to see Cook eventually step into that role himself, as Iger, Dimon, Microsoft Corp.'s Satya Nadella and Cisco Systems Inc.'s Chuck Robbins have done at their companies. That would give Cook an even tighter grip on the iPhone maker.
Nevertheless, Apple apparently recognizes the need for change at the company. Senior executives such as services chief Eddy Cue have warned that Apple risks becoming the next BlackBerry or Nokia if it doesn't adapt quickly.
