Apple Inc. is facing increased pressure from analysts to rethink its leadership strategy as it navigates a critical juncture in its evolution.
Following the announcement that Chief Operating Officer Jeff Williams will retire later this year, LightShed Partners analysts Walter Piecyk and Joe Galone issued a stark warning: Apple may be risking its future by clinging to operational continuity instead of embracing visionary, product-led change.
In their Wednesday note, Piecyk and Galone said that while Tim Cook’s leadership has been financially successful—with over $2 trillion in iPhone sales under his tenure—Apple needs a chief executive who can meet the moment of artificial intelligence.
“To be clear, Tim Cook was the right CEO at the time of his appointment and unquestionably has done a great job,” they wrote.
“Apple has sold over $2 trillion of iPhones with Cook as CEO. In fact, iPhone sales could show signs of life this quarter, as tariff-related pull-forwards help stabilize replacement cycles that may finally be bottoming out.”
Still, the analysts doubt Apple will be able to achieve a “supercycle,” or a dramatic rush of upgrades.
Analysts back COO’s choice but urge shift from “stable” choices
Apple named Sabih Khan, a 30-year Apple veteran of Indian origin, as its new chief operating officer.
Khan will succeed Williams, who played a key role in Apple’s hardware strategy, including the Apple Watch.
Khan has been instrumental in managing the company’s supply chain, especially during the pandemic.
His appointment suggests Apple is favouring stability at a time of executive turnover—its CFO also recently stepped down.
Yet LightShed analysts argue that such inward-looking decisions may not be enough in today’s rapidly shifting technological landscape.
“By staying internal with Apple’s COO choice, investors should expect a sense of stability in that role. But perhaps keeping things stable shouldn’t be the objective for Apple nowadays, hence the call for a big shift at the CEO post,” they said.
Analysts say Apple’s slow AI rollout raises fears of falling behind in tech’s next big race
Apple’s perceived lag in artificial intelligence has become a central concern.
“AI will reshape industries across the global economy, and Apple risks becoming one of its casualties,” the analysts commented.
They noted that some think the company has an insurmountable moat, referring to how it insulates its business from competition.
But “we have seen these moats crumble many times during technological revolutions,” they added.
Apple’s competitors, including Google, Microsoft, and Meta, have already rolled out major AI offerings, from chatbots to productivity tools.
Meanwhile, Apple has been slower to integrate generative AI into its devices, raising fears it could be left behind in a key technological arms race.
The analysts were also blunt in their assessment of Apple’s struggles to deliver on its promises around a revamped Siri.
At the 2024 WWDC developer conference, Apple unveiled plans for a more advanced version of the voice assistant, capable of understanding conversational context.
More than a year later, however, those features have yet to materialize.
“Calling last year’s WWDC simply a case of over-promising and under-delivering would be kind,” the LightShed team wrote.
“Apple was nowhere with AI then, and little has changed since.”
Piecyk and Galone noted that Apple has experimented with numerous product categories over the years, often with limited success.
However, they cautioned that the company does not have the same margin for error when it comes to artificial intelligence.
“Missing on AI could fundamentally alter the company’s long-term trajectory and ability to grow at all,” they wrote.
Apple’s AI woes have reflected in its stock price as Apple Shares fell 14% in 2025.
Leadership succession speculation builds
As Williams exits, speculation over Cook’s eventual successor is growing.
John Ternus, Apple’s senior vice president of hardware engineering, is seen as a top internal candidate.
Ternus is currently overseeing product lines like iPhone and Mac, and his product-centric orientation aligns with the leadership model analysts now say Apple needs.
With AI poised to reshape every corner of the tech industry, analysts argue Apple cannot afford to treat it like a peripheral feature. Whether the company acts on that warning—and reorients leadership accordingly—remains to be seen.
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