'Apple needs a product focused CEO': Report says Tim Cook no longer right for Apple's AI era

Apple is under mounting scrutiny over its artificial intelligence (AI) strategy, with analysts at research firm LightShed Partners suggesting the company may need a change in leadership to remain competitive in the AI-driven future. While they acknowledge Tim Cook’s successful tenure as CEO, the analysts argue that Apple now requires a product-focused leader to avoid falling behind in a rapidly evolving tech landscape.

In a note to clients, LightShed analysts Walter Piecyk and Joe Galone stated that “Apple now needs a product-focused CEO, not one centred on logistics.” They warned that Apple risks becoming one of AI’s casualties if it fails to deliver breakthrough features and keep pace with rivals. “AI will reshape industries across the global economy, and Apple risks becoming one of its casualties,” they wrote.

The comments come amid growing concern that Apple has lost momentum in the AI race. The company’s long-anticipated Apple Intelligence features, previewed during the 2024 WWDC developer conference, have faced delays, with the AI-enabled overhaul of Siri reportedly pushed back by more than a year due to technical setbacks. The analysts described these issues as more than just “overpromising and underdelivering,” arguing instead that “Apple was nowhere with AI then, and little has changed since.”

This perception has contributed to a sluggish performance for Apple shares in 2025, which are down 16% year-to-date. In contrast, competitors like Meta and Microsoft have surged ahead, with share price gains of 25% and 19% respectively, driven in large part by their early and aggressive AI rollouts.

Despite the criticism, Cook’s legacy remains formidable. Since becoming CEO in 2011, Apple shares have soared over 1,400%, compared to a 430% rise for the S&P 500. Under his leadership, the company has sold more than $2 trillion worth of iPhones and maintained strong operational discipline. Analysts also believe iPhone sales may see a revival this quarter, thanks to tariff-related shifts stabilising replacement cycles.

Still, the pressure for internal transformation is growing. Apple recently announced that longtime Chief Operating Officer Jeff Williams will retire this month. India-born Sabih Khan, who joined Apple in 1995 and has led its global supply chain and sustainability efforts, has been named as his successor. As COO, Khan now becomes the number two at Apple.

While Khan’s elevation signals stability within the executive team, LightShed argues that Apple needs more disruptive changes. “It’s time for more disruptive change, not less,” the analysts said, especially as Apple contends with an ageing product line, internal cultural shifts, and increased scrutiny from developers and regulators.

However, a leadership shake-up appears unlikely in the near term. Bloomberg’s Mark Gurman reports that there are no signs Cook is preparing to step down or that a successor is being groomed. Apple’s board remains loyal, with directors such as Arthur Levinson, Susan Wagner, and Ronald Sugar seen as steadfast supporters of Cook.

“There’s no question Cook bears responsibility for Apple’s current struggles,” Gurman wrote, citing missteps in AI, product innovation, and internal culture. “But there’s also no question that the board still sees him as the only person capable of turning things around.”

In fact, Cook’s influence may expand further. Levinson has surpassed Apple’s recommended board retirement age, and it is speculated that Cook could eventually assume the role of chairman, following in the footsteps of leaders like Microsoft’s Satya Nadella and Disney’s Bob Iger.

As internal voices, including services chief Eddy Cue, reportedly warn of Apple’s risk of becoming the next BlackBerry or Nokia if it doesn’t adapt quickly, the company finds itself at a crossroads: continue under the steady hand of Cook, or take bold steps to reignite innovation in the AI era.