Apple Faces Pressure to Replace CEO Tim Cook Amid AI Lag

Apple Inc. is facing mounting pressure to consider a change in leadership as its artificial intelligence (AI) initiatives lag behind those of its competitors. Analysts at LightShed Partners have publicly called for the company to replace CEO Tim Cook, cautioning that Apple risks falling behind in the rapidly evolving tech landscape.

According to the analysts Walter Piecyk and Joe Galone, Apple needs a product-focused CEO rather than one centered on logistics. This call for change comes at a time of transition for the company, as Jeff Williams, Apple’s longtime chief operating officer, is set to leave the firm this month. Williams was widely seen as a potential successor to Cook, and his departure is expected to pave the way for significant changes in the company's leadership. Sabih Khan, who has been with Apple for 30 years, will replace Williams.

With Williams' departure, attention is already shifting to John Ternus, Apple’s Senior Vice President of Hardware Engineering. Ternus has been leading the development of Apple’s key products, such as the iPhone, iPad, and Mac, and may emerge as the top internal candidate to replace Cook.

Apple’s slow adoption of generative AI has not gone unnoticed by investors or the broader tech ecosystem. Unlike Microsoft and Google, which have aggressively pushed AI-based tools and alliances, Apple has made only modest efforts in this area. This hesitation is starting to impact the company, as investors and consumers increasingly favor AI-enabled devices that learn, predict, and adjust to user needs.

At the 2024 Worldwide Developers Conference, Apple unveiled a set of features called “Apple Intelligence.” However, analysts have noted that these updates were more evolutionary than revolutionary in terms of AI capabilities, falling short of what rivals have offered.

Under Tim Cook’s leadership since 2011, Apple’s stock has risen more than 1,400 percent, significantly outpacing the broader S&P 500 index, which has climbed roughly 430 percent over the same period. During his tenure, Apple became the first company to reach a $3 trillion market capitalization and expanded its product lineup with new devices and services. Cook has also navigated the company through multiple international crises, including COVID-19 and global supply chain issues, earning him a reputation as a trusted figure on Wall Street and in Silicon Valley.

However, some analysts argue that Cook’s legacy alone does not justify maintaining the status quo. Piecyk and Galone acknowledged that Cook was the right CEO when he took over and credited him for doing an exceptional job. Nevertheless, they contend that the current era demands new leadership—someone who can drive the bold product innovation that originally made Apple a global leader. With Jeff Williams stepping down, they believe the moment calls for more disruptive change, not less.

The push for Cook to leave has not yet reached the point where it is a common demand among investors or directors, and there is no indication that the CEO intends to step down. However, the note from LightShed is part of an increasing number of criticisms directed at Apple’s direction in the era of accelerated progress in AI.