Should the Apple Board Replace Tim Cook with Jony Ive? [Opinion]
After eighteen months of running Apple following Steve Jobs’ untimely death, dark clouds have gathered above Tim Cook’s head: Apple is expected to report its first profit drop in a long time. This begs the question: Is Tim Cook a perfect fit for the CEO position, or should the Apple board of directors replace him?
A Bloomberg forecast predicts that Apple will report a 2% fall in net income for the first quarter to $12.8 billion.
Apple’s net income growth curve dramatically increased when Steve Jobs resumed control of Apple, with at least 10% rise each quarter (except for one quarter in 2003). Also, Bloomberg forecasts only an 18% sales increase, which is the lowest rate since 2009.
However, according to a report from the Kantar Worldpanel ComTech report, iOS maintains a strong grip on the US smartphone market, although the same can’t be said for Europe, where Android is dominant.
Also, Wall Street analysts project sales of 48 million iPhones, 22.4 million iPads, and 5.1 million Macs, and Apple has also just entered into China, its second-biggest market, according to Cook.
Analysts are concerned about Apple’s core market reaching saturation, as emerging markets such as China are unwilling to pay a premium price, they say. Also, Apple’s battle against Samsung adds another reason to worry, as the South Korean manufacturer is currently offering 80 different smartphone models.
In light of the revenue drop, Cook has to demonstrate that he can create new sources of revenue. Although he has overseen launches of new products, he has also stood at the helm of products that weren’t so successful, such as the heavily criticized Maps application.
Do analysts expect Tim Cook to become the next Steve Jobs? Maybe, as they push for a new product launch based on Apple’s history for innovation and category-killing product introductions: iPod, iPhone and iPad.
As a Forbes article points out, a person who can be considered to be doing a better job than Tim Cook is Jony Ive, Apple’s head of hardware and software design. Is the Apple board satisfied with Tim Cook’s work so far?
Tomorrow’s quarterly earnings report will play a key role in determining who sits at the top of the tree at Apple.
Written by Istvan Fekete; Edited by Mike Crook