or Connect
AppleInsider › Forums › Investors › AAPL Investors › Apple's executive shakeup viewed as consolidation, not cause for concern
New Posts  All Forums:Forum Nav:

Apple's executive shakeup viewed as consolidation, not cause for concern

post #1 of 65
Thread Starter 
Major changes to Apple's executive team surprised investors this week, but market watchers don't believe anything is awry with the company's management.

Gene Munster with Piper Jaffray said the changes announced by Apple on Monday seem to confirm that Jony Ive, the company's acclaimed designer, will be with Apple for the "foreseeable future." He believes Ive's expanded role should put to rest "a recurring investor concern of an Apple without Ive."

"This, combined with Tim Cook's nine years remaining on his contract with Apple, suggests the two most critical management figures will be in place for the longer term," Munster said.

The biggest change at Apple came with the departure of Scott Forstall, the company's former head of iOS software. Reports have indicated that Forstall was forced out for a number of reasons, including dissatisfaction with the new mapping software in iOS 6.

"Apple is consolidating leadership around core long term executives, and the probability that key management is committed to Apple appears to have increased," Munster said.

Forstall


Brian Marshall of ISI Group also isn't concerned about the departure of Forstall or John Browett, Apple's former retail chief whose short tenure at the company was not well received. While Marshall said he is "disappointed" that Forstall will no longer head Apple's iOS team, it doesn't change his current positive outlook for the company.

"If the company can be successful without Steve Jobs, it can be successful without Scott Forstall," he said.

And Brian White of Topeka Capital Markets believes the changes are a "natural evolution" for Apple as it pushes for more seamless integration across its devices. He sees Apple's management shakeup as a result of the company "pushing for new levels of future innovation."

In the departure of Forstall and Browett, Ive will head up a new Human Interface team at Apple, Eddy Cue will take over responsibility for Siri and Maps, Craig Federighi becomes head of iOS and OS X software, and Bob Mansfield will be in charge of Apple's new Technologies group, which will integrate all of its wireless teams, including semiconductor technologies.

Apple has said that Forstall will remain at Apple in the near term as an advisor to Apple CEO Tim Cook, though the position has been characterized as a "formality" intended to keep him from going to a competitor. A search for a new retail chief is also underway, and in the interim the responsibilities will fall to Cook.
post #2 of 65
The fact he was head of Dixon's wasn't even the first clue to why he was a bad choice. The fact he was a British manager was the first clue (and I speak as a Brit). British management is some of the worst in the world. Self-replicating, driven by making pointless changes to 'make their mark' and unnecessarily combatative with their staff they have driven British industry into the ground for decades.
post #3 of 65
the comparisons to Steve Jobs are amazing... when Steve Jobs was ousted at the original Apple he was going to be kept around as an "advisor" but he didn't want too... because he had no power IMO (Just a figurehead with a desk)... As described in Walter Isaacson's book...
post #4 of 65

Apple still has a ton of momentum. As a Mac / iOS developer, I view this as a chance, a shot in the arm to rejuvenate iOS and push the UI on both operating systems to new levels. I haven't been this excited with Apple in a while.

 

Note: in before TS posts!!! That's some kind of achievement. 

 

 

Quote:
The reason why they are analysts is because they failed at running businesses.

 

Reply

 

 

Quote:
The reason why they are analysts is because they failed at running businesses.

 

Reply
post #5 of 65
Scott is NO Steve !

Every company changes out personnel when management changes. Either the emps don't like the new management or management has different goals that the emps don't want to follow. You just don't want to keep people who are going to undermine you the entire time.

Most of the time they are contracted to stay on for a while during transition to make sure all questions are answered. This is nothing new.

The departure of Scott is a great thing for Apple as he was getting too arrogant for his position. Things were not quite coming together (maps).

I'm excited about the future of Apple more so then before.
post #6 of 65

Anyone ever notice Scott was the only individual that ever used a script while presenting?  How hard is it to know your product?

post #7 of 65
Quote:
Originally Posted by drdb View Post

The fact he was head of Dixon's wasn't even the first clue to why he was a bad choice. The fact he was a British manager was the first clue (and I speak as a Brit). British management is some of the worst in the world. Self-replicating, driven by making pointless changes to 'make their mark' and unnecessarily combatative with their staff they have driven British industry into the ground for decades.

you do realize Jonny Ive is British right?

post #8 of 65
Quote:
Originally Posted by markm929 View Post

Anyone ever notice Scott was the only individual that ever used a script while presenting?

 

You almost certainly wrong. Even Steve used a script. I'm sure the others do also. They may  just be better at hiding it. That only speaks to Scott's experience and smoothness in public speaking.

The state is nothing more than a criminal gang writ large.

Reply

The state is nothing more than a criminal gang writ large.

Reply
post #9 of 65
While I am happy to hear that a designer of Ive's calibre is going to head UI at Apple, I think it will take some time to see how well his industrial design experience maps to UI design. The disciplines are related, but they do not overlap significantly. There is a lot of cognitive psych that goes into UI, and I'm not sure it can be seen as purely a design endeavor.

I hope that we aren't seeing some unraveling at Apple; it will take 12 - 18 months to really know.
post #10 of 65
Watch "Are You Being Served?" on PBS one evening and you will learn everything you need to know about British management.
post #11 of 65
Originally Posted by markm929 View Post
Anyone ever notice Scott was the only individual that ever used a script while presenting?  How hard is it to know your product?

 

Anyone ever notice how completely and utterly wrong you are? Steve used a script every single time.

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply
post #12 of 65
Quote:
Originally Posted by drdb View Post

The fact he was head of Dixon's wasn't even the first clue to why he was a bad choice. The fact he was a British manager was the first clue (and I speak as a Brit). British management is some of the worst in the world. Self-replicating, driven by making pointless changes to 'make their mark' and unnecessarily combatative with their staff they have driven British industry into the ground for decades.

speaking as an ex-Brit - that generalization about british managers, just like any racial or ethnic generalization is silly. Just because he came from Dixons doesn't mean he would be bad either, but if Apple knew that he had a significant part to play in the way Dixons did their business, then it was odd that they hired him. To anyone in the USA not familiar with shipping at Dixons, its like a small best buy but without any of the redeeming features (!?!)

post #13 of 65
Quote:
Originally Posted by AZREOSpecialist View Post

Watch "Are You Being Served?" on PBS one evening and you will learn everything you need to know about British management.

aha - perhaps in the 1970's - 

post #14 of 65
Quote:
Originally Posted by Right_said_fred View Post

Quote:
Originally Posted by AZREOSpecialist View Post

Watch "Are You Being Served?" on PBS one evening and you will learn everything you need to know about British management.

aha - perhaps in the 1970's - 

Okay, well, watch The Office, and you'll know all about American management...

No country has the exclusive license on inappropriate lunkheadedness.

post #15 of 65
John Browett got canned? couldn't happen soon enough. best wishes in his future ditch-digging work.
>>< drow ><<
Reply
>>< drow ><<
Reply
post #16 of 65
Quote:
Originally Posted by Richard Getz View Post

Scott is NO Steve !
Every company changes out personnel when management changes. Either the emps don't like the new management or management has different goals that the emps don't want to follow. You just don't want to keep people who are going to undermine you the entire time.
Most of the time they are contracted to stay on for a while during transition to make sure all questions are answered. This is nothing new.
The departure of Scott is a great thing for Apple as he was getting too arrogant for his position. Things were not quite coming together (maps).
I'm excited about the future of Apple more so then before.

 

I agree with you.  Forstall was a lieutenant with his own set of strengths and weaknesses, but Jobs was completely off-the-charts one-of-a-kind.

 

That said, Jobs wasn't 100% right 100% of the time.  The biography surprised me about how seriously wrong Jobs was about iTunes on Windows and how much effort it took for clearer heads to prevail.  With that in mind, it seems plausible that Jobs was also wrong about Forstall and Tim Cook has decided that now is the time.  As an Apple enthusiast and investor, I have no misgivings at all about this move.

post #17 of 65
He sees Apple's management shakeup as a result of the company "pushing for new levels of future innovation." I really hope so!
post #18 of 65
Quote:
Originally Posted by boredumb View Post

Okay, well, watch The Office, and you'll know all about American management...

No country has the exclusive license on inappropriate lunkheadedness.

 

The Office, a show that originated in Britain and has been wildly popular in the US, shows that management styles between countries aren't so different. I've had good and bad managers from all over the world.

post #19 of 65

Glad to see Gene Munster impression, but Briand White is a clown, he is blindly bullish on Apple no matter what.  I would like to see what Shaw Wu thinks about it too. 

 

Cant wait to see where the stock will go, Apple is sold out of the ipad mini, the ipad 4 and the iphone 5 and yet the 2 exec move is probably going to tank the stock.  Seriously if this keep falling off and we get below the 200 DMA I will sell every single stocks I own and get into Apple. No way that good is bad and bad is good trading tread is going to hold in the long run.

 

In other news, Amazon PE is now over 3000+, it keeps dumping hardware at cost, its losing money by the truck load and yet the stock rally up. We must be near the end of world or something, people have gone insane.


Edited by herbapou - 10/30/12 at 9:44am
post #20 of 65
The clear reason is his striped shirts! Black mock T-neck or a tee - that's it! ;-)
post #21 of 65
Quote:
Originally Posted by haar View Post

the comparisons to Steve Jobs are amazing... when Steve Jobs was ousted at the original Apple he was going to be kept around as an "advisor" but he didn't want too... because he had no power IMO (Just a figurehead with a desk)... As described in Walter Isaacson's book...

 

Amazingly shortsighted, I think. Here' why I say that:

http://forums.appleinsider.com/t/153886/forstalls-firing-reportedly-met-with-quiet-jubilation-at-apple/80#post_2222859

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply
post #22 of 65
Quote:
Originally Posted by Tallest Skil View Post

 

Anyone ever notice how completely and utterly wrong you are? Steve used a script every single time.

 

Quote:
Originally Posted by MJ1970 View Post

 

You almost certainly wrong. Even Steve used a script. I'm sure the others do also. They may  just be better at hiding it. That only speaks to Scott's experience and smoothness in public speaking.

 

 

Apologies to all.  My comment was with respect to the grammar school flip book that Scott used in his presentations.  I understand everyone has a "script", but was speaking to how unprepared that made him look in comparison to the rest of the usual presenters.

post #23 of 65
Quote:
Originally Posted by haar View Post

the comparisons to Steve Jobs are amazing...

The comparisons to Steve Jobs are ridiculous.

First and most obvious, SF has zero charisma, zero warmth, zero RDF.

Second, SJ was primarily an artist. SF an engineer.

post #24 of 65
Quote:
Originally Posted by Shameer Mulji View Post

you do realize Jonny Ive is British right?

 

And he's a KNIGHT to boot.  That's just...awesome.

post #25 of 65
Bowett leaving... Fantastic... He did not belong and just wanted to do whatever it takes to make a difference and make a mark.. Regardless of apples culture and image and hallmarks .

Forstall.. I can see why he id gone... Maybe becoming too jaded and arrogant. Screwed up maps...
Siri is not truly showing its potential.. And ios apps have disjointed interface... No harmony or consistency in interface design.

IVES will kick butt as head of interface.. He has the taste, the minimalistic approach ..and ergonomic insight! This is awesome for apple!

Eddy will do much better for siri and maps... I believe.

And ios and osx being managed under the same umbrella by Craig. Will bring better synergy

This is great for apple!
post #26 of 65
Quote:
Originally Posted by Richard Getz View Post

Scott is NO Steve !
Every company changes out personnel when management changes. Either the emps don't like the new management or management has different goals that the emps don't want to follow. You just don't want to keep people who are going to undermine you the entire time.
Most of the time they are contracted to stay on for a while during transition to make sure all questions are answered. This is nothing new.
The departure of Scott is a great thing for Apple as he was getting too arrogant for his position. Things were not quite coming together (maps).
I'm excited about the future of Apple more so then before.

 

First order of business for any regime change? Kill the intellectuals, jail the lawyers. :D

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #27 of 65
"If the company can be successful without Steve Jobs, it can be successful without Scott Forstall,"

We are only starting to see the management and product decisions being made "post Jobs". I have no doubt that Jobs had significant input into all the products Apple is currently introducing.

I wonder whether Forstall's departure would have been endorsed by Jobs given that Forstall likely had the same difficult demeanour (as reported by people celebrating his departure)while Jobs was still at the helm. I don't think so.

As management and creative talent leave Apple, taking their creative ideas with them, Apple will suffer, to the extent it can't replace them with better talent and will also suffer when they join competitors bringing Apply style innovation to their doorstep.

I don't see much good coming out of these changes despite how the "analysts" might try to spin things. Of course the only people who really know what is going on is current Apple management.
post #28 of 65
Quote:
Originally Posted by Shameer Mulji View Post

you do realize Jonny Ive is British right?

But he cut his 'managerial teeth' in the US....
post #29 of 65

Quote: Watch "Are You Being Served?" on PBS one evening and you will learn everything you need to know about British management.

 

 

 

Yeah or better yet..."The Fall and Rise of Reginald Perin" :) "It's not too late for a leopard to change horses in mid-stream!"

post #30 of 65
Quote:
Originally Posted by anantksundaram View Post


But he cut his 'managerial teeth' in the US....

 

"Stay away from me, man! I cut you!"

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #31 of 65

This is GREAT news for the future of innovation at Apple. They just swept aside those who stood in innovation's path.

post #32 of 65
Quote:
Originally Posted by Shameer Mulji View Post

you do realize Jonny Ive is British right?

 

 

He has lived in the US for over twenty years. 

post #33 of 65

The role of the board of directors in this management revamp has not been discussed. It's hard to imagine that significant changes to the structure of corporate management would have been taken without consulting at least some of Apple's board members, even if the plans were mapped out by Cook and any designees that he brought into the loop. Six of Apple's seven outside directors rose to top leadership in a diverse range of businesses, and one of their responsibilities as directors is to become familiar with and periodically monitor the performance of Apple's executive officers (see http://files.shareholder.com/downloads/AAPL/1243745810x0x443006/9bf4bd94-42fd-4e88-84f9-908dfc3ecb60/compensation_charter.pdf). Do boards care about the corporate climate among management? In Apple's case, you bet.

 

Much of this discussion seems to have assumed that these decisions took place in a vacuum, without some sort of consensus among those responsible for corporate governance. That would be shortsighted.

 

Moreover, I am getting the sense that Bob Mansfield was anything but passive in these past few months. His appointment as Executive VP over a new group, Technologies, signifies that he may have mapped out the dimensions of that role for himself, with the full concurrence of Cook and the board. It'll be as interesting to see what direction he takes that responsibility as it will be to see where Ive goes from here. Both of them may truly be carrying the torch of innovation that Steve Jobs brought forward for so many years.

I admit to being a Fanatical Moderate. I Disdain the Inane. Vyizderzominymororzizazizdenderizorziz?

Reply

I admit to being a Fanatical Moderate. I Disdain the Inane. Vyizderzominymororzizazizdenderizorziz?

Reply
post #34 of 65

Amazingly there's been no noise about Bertrand Serlet sitting among Apple executives at the iPad mini keynote. He left the company last year.

post #35 of 65
MacRumors has an article up that makes a lot of sense. Basically saying that Cook is streamlining Apple more into functions than a bunch of different product leaders. The way I see it is you now have an org chart that's basically as follows:

Ive - Design
Federighi - Software
Cue - Services

And then all the support players like Schiller, Riccio, Williams, etc.

I think that makes much more sense and hopefully we'll get more cohesive products and user experiences out of it resulting in the best products possible. And it appears that these guys all get along really well so we shouldn't have to worry too much about internal politics. Seems to me that's a win. 1wink.gif
post #36 of 65

 

This move may have been planned this summer shortly after Mansfield's resignation. Cook could have wooed him back with the promise to get rid of Forstall and sweeten the pot with a fellowship-like position to pursue other innovative ideas.

 
 

Edited by Jony0 - 10/30/12 at 1:06pm
post #37 of 65
Quote:
Originally Posted by haar View Post

the comparisons to Steve Jobs are amazing... when Steve Jobs was ousted at the original Apple he was going to be kept around as an "advisor" but he didn't want too... because he had no power IMO (Just a figurehead with a desk)... As described in Walter Isaacson's book...
 

 

That's what I'm thinking too. From what I understand, Scott was a key part of what the iconic iOS is today. I'm personally surprised someone of his status in the industry would be so suddenly leaving a company like Apple.

post #38 of 65
Quote:
Originally Posted by bkcrowl View Post

That's what I'm thinking too. From what I understand, Scott was a key part of what the iconic iOS is today. I'm personally surprised someone of his status in the industry would be so suddenly leaving a company like Apple.
When iPhone basically replaced iPod as the hot product at Apple Tony Fadell stayed on in an "advisory" role. But within a year he was gone. My guess is this was a face saving thing for Forstall or he has some unfinished lose ends he needs to tie up. In Apple's official press release neither Forstall nor Browett were thanked for their service. So my guess is they're both gone for good.
post #39 of 65
Quote:
Originally Posted by Rogifan View Post

MacRumors has an article up that makes a lot of sense. Basically saying that Cook is streamlining Apple more into functions than a bunch of different product leaders. The way I see it is you now have an org chart that's basically as follows:
Ive - Design
Federighi - Software
Cue - Services
And then all the support players like Schiller, Riccio, Williams, etc.
I think that makes much more sense and hopefully we'll get more cohesive products and user experiences out of it resulting in the best products possible. And it appears that these guys all get along really well so we shouldn't have to worry too much about internal politics. Seems to me that's a win. 1wink.gif

You forgot Mansfield—Technology!

This is a huge change, and what was said about his new role is very significant. It sounds to me that Apple is going to move further into manufacturing, including silicon.
post #40 of 65
Quote:
Originally Posted by Jony0 View Post

 



This move may have been planned this summer shortly after Mansfield's resignation. Cook could have wooed him back with the promise to get rid of Forstall and sweeten the pot with a fellowship-like position to pursue other innovative ideas.
 
 

I had the same feeling.

Mansfield: "If you don't get rid of him, I'm through. It's either him or me."

Cook: "What is it with you guys? Jony said the same thing . . ."
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: AAPL Investors
AppleInsider › Forums › Investors › AAPL Investors › Apple's executive shakeup viewed as consolidation, not cause for concern