Despite Apple’s current challenges in artificial intelligence, CEO Tim Cook is not leaving anytime soon. However, the retirement of the company’s number two executive, Jeff Williams, is just the beginning of the largest executive restructuring the company has seen in decades.
Introduction: Cook is staying, but Apple is changing
Whether you believe Apple CEO Tim Cook should step down or not, the reality is clear: he is unlikely to leave Apple’s leadership anytime soon. Although Apple is embroiled in its biggest crisis in years due to falling behind in the AI race, Cook has gained staying power similar to other industry leaders like Bob Iger at Disney or Jamie Dimon at JPMorgan. As Cook approaches his 65th birthday, he is likely to remain at the helm of the iPhone maker for at least another half-decade.
Reasons why Tim Cook is staying in his position
There are several reasons why Cook’s position is secure. First, Jeff Williams, his longtime deputy, announced plans to retire later this year, meaning there is no immediate successor ready to take over. Second, there are no internal indications that Cook is preparing to leave or begin a succession process.
Furthermore, the board of directors feels no need to make a change. Apple board members are loyal to Cook, such as Arthur Levinson and Susan Wagner. They have largely allowed him to run the business without interference. Like most public company CEOs, Cook is judged primarily by Apple’s stock performance. While shares are down 16% this year, they are up about 1,500% since he became CEO in 2011.
There is no doubt that Cook bears responsibility for Apple’s current difficulties, including AI missteps, aging product lines, eroding design culture, and a decade-long dry spell in revolutionary hardware. But there is also no doubt that the board still sees him as the only person capable of turning things around.
The beginning of major change: Williams’ retirement
Despite the board’s confidence in Cook, there is a recognition among Apple’s top decision-makers that something must change. The broad administrative restructuring that has been in preparation over the past two years has begun. Williams will be replaced by Chief Operating Officer Sabih Khan, and CFO Luca Maestri handed over the reins to Kevan Parekh in January.
Redistributing responsibilities and a potential successor
Williams’ departure paves the way for further changes. His responsibilities will be distributed as follows:
- Design Team: Will report directly to Cook, an arrangement that previously occurred between 2015 and 2017.
- Apple Watch and Health: Development for these devices has already transitioned to Hardware Engineering Chief John Ternus about three years ago, so practically nothing will change.
- watchOS and Health Software: These teams will move to Software Engineering Chief Craig Federighi’s organization.
- Fitness+ Service: Will move to the Apple Services group.
- AppleCare Team: Likely to move to Sabih Khan’s new organization.
One remaining concern is the lack of a quick replacement for the CEO in an emergency. While Khan will hold the title of COO, this does not make him the clear successor. In the event of an emergency, Apple would likely be run initially by a committee. Over the long term, the most likely successor remains John Ternus, head of hardware. He is about 15 years younger than Cook, has a long history with the company, and can be considered a “product-focused CEO.”
Conclusion: A new era on the horizon
The moment is right for a reset. The pressure Apple faces over its AI performance and slow innovation gives the company cover to reshape its organizational structure and strategy in ways it might not have dared before. Tim Cook is staying, but the Apple he leads in the coming years will see drastic changes in its leadership team, potentially opening the door to a new era of innovation and change.
