Analysts at LightShed Partners have expressed concerns about Apple Inc.’s leadership as the company encounters difficulties in the AI sector.

They recommend that CEO Tim Cook be replaced with a more product-focused executive.

This commentary follows Apple’s announcement that Chief Operating Officer Jeff Williams will step down this month.

Sabih Khan, a 30-year veteran of the company, is set to succeed him.

Williams was previously seen as a potential successor to Cook, but John Ternus, senior vice president of hardware engineering, is now considered the leading candidate.

Analysts Walter Piecyk and Joe Galone from LightShed warn that Apple’s slow progress in AI development could adversely affect its long-term growth.

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🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Apple’s innovation cycles have historically aligned with leadership transitions

Apple’s trajectory shows a pattern where different leadership strengths are needed at different stages of the company’s evolution.

When Tim Cook succeeded Steve Jobs in 2011, Apple needed operational excellence to scale its iPhone business globally, which Cook delivered by leveraging his supply chain expertise from IBM and Compaq 1.

Cook’s operational focus produced remarkable results. He reduced Apple’s inventory from $400 million to $78 million in just seven months after joining in 1998, transforming manufacturing efficiency before becoming CEO 2.

This operations-first approach helped Apple’s stock surge 1,400% during Cook’s tenure compared to the S&P 500’s 430% growth over the same period, validating the board’s decision to choose a logistics expert after Jobs.

However, the AI revolution represents a fundamentally different challenge requiring product vision and technical innovation rather than supply chain optimization. Analysts suggest Apple may need a leader with a stronger focus on these areas in the future.

The Jeff Williams succession decision signals Apple’s recognition of this changing landscape, as the COO role is being restructured to separate operations from product design for the first time 3.

2️⃣ The age of AI demands different leadership competencies than the mobile era

Apple’s current AI struggles reflect a fundamental mismatch between its privacy-first approach and the data-hungry nature of generative AI development.

While competitors like Google and Microsoft have leveraged massive cloud infrastructure and data collection to advance their AI capabilities, Apple’s focus on on-device processing and privacy creates inherent limitations for developing competitive AI models 4.

This strategic tension requires a leader with deep technical understanding of AI’s architectural requirements, as the company’s anticipated AI features like an enhanced Siri are already facing delays with significant upgrades not expected until 2026 5.

The global workflow automation market is projected to exceed $18 billion by 2025, representing a critical growth sector that Apple risks missing if it cannot accelerate its AI integration 6.

John Ternus, currently Senior VP of hardware engineering, is emerging as a potential successor because his background bridges Apple’s hardware excellence with the technical knowledge needed for next-generation AI-powered products 7.

3️⃣ Succession patterns reveal Apple’s strategic priorities

The retirement of Jeff Williams and restructuring of the COO role provides a window into Apple’s evolving strategic priorities and succession planning.

Williams, who had been considered a potential CEO successor, is being replaced by Sabih Khan in a narrower COO role focused specifically on manufacturing and logistics rather than the broader operational oversight Williams maintained 3.

This restructuring signals Apple’s recognition that its next phase requires different leadership qualities, with the separation of operations from product design suggesting a more innovation-focused approach 3.

Tim Cook has explicitly emphasized succession planning, acknowledging the need to prepare multiple candidates with diverse skills for future leadership 7.

The leadership transition comes at a critical juncture when Apple’s stock has fallen 16% in 2025 while competitors like Meta and Microsoft have gained 25% and 19% respectively, highlighting the market’s concern about Apple’s competitive position in AI [from original article].

This pattern of leadership evolution mirrors broader tech industry transitions, where companies often shift from operational leaders during scaling phases to product visionaries during periods of technological disruption.

Recent Apple developments

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