Apple may be looking for a new CEO to replace Tim Cook, after shares dropped by almost 50% compared to the record reached in September, according to sources on Wall Street, quoted by Forbes. The sources said that Apple’s board is about to begin efforts to identify a candidate, a measure supported by some investors who reduced their holdings in the company stock in recent months.
A source claims that there are moves among investors in the company to identify a candidate with credibility and experience in the IT industry for the position of CEO, “so Apple does not have the fate of Hewlett-Packard.” Investors’ concern regarding the Apple management worsened as there is no sign that shares decline will stop soon. After reaching a record high in September of $702, Apple shares fell sharply, to $390 at the end of last week.
Most analysts on Wall Street have retained a favorable position to Apple. Of the 37 analysts at major banks and investment firms on Wall Street who follow the Apple, none downgraded the company’s shares to “sell”, and 25 continue to strongly recommend a “buy”. Six other recommended the accumulation of Apple shares in moderation and the same number believe that the company’s shares should be retained.
One of the main reasons behind the positive attitude of the banks on Wall Street toward Apple is the huge cash reserves of the company, estimated at $137 billion. However, Apple products continue to benefit from a strong market demand, although sales, profits and share price do not record the strong growth of recent years.
Apple has lost almost a quarter of its market value since the beginning of the year amid investors’ concern of a slow down of company’s sales in a market increasingly crowded, which is fast approaching saturation.
Tim Cook took over as CEO of Apple in August 2011, immediately after the retirement of Steve Jobs, who died shortly after.
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