Apple Shares Get to React to Management Firings
Apple Inc. (NASDAQ: AAPL) shares are finally getting to react to the news of Tim Cook's management reshuffling. The changes were serious, but Steve Jobs also had a policy of accountability and ownership of failure. Scott Forstall was terminated while the markets were closed this week as head of iOS Software, and John Browett is out as head of Retail. Forstall reportedly refused to sign the apology letter after the Apple maps debacle.
Jony Ive will now lead both software interface and hardware design. Eddy Cue will take charge of Siri and Maps and will move into online services. Craig Federighi will now lead iOS, in addition to the Mac OS. Bob Mansfield will lead the new Technologies group, which combines Apple's wireless teams and semiconductors. So far we have seen two research reports on the matter that detail the expectations.
Credit Suisse's Kulbinder Garcha believes that these changes are expected to increase collaboration across hardware, software and services. The firm outlined risks, but also said that it was maintaining an Outperform rating with a $750 target. Stern Agee's Shaw Wu was positive, with some notes of caution, but he maintained his Outperform rating with an $840 price target. Full details of these two reports are here.
Apple shares are so far indicated down below $603, after closing at $604.00 last Friday, and the 52-week trading range is $363.32 to $705.07. These indications may change as the market opens today as the DJIA and S&P 500 futures are higher.
JON C. OGG
Filed under: 24/7 Wall St. Wire, Analyst Calls, Management Change, Technology, Technology Companies Tagged: AAPL