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Cook receives praise for Apple's 'cabinet reshuffle', will the markets react positively?

Karen Haslam | Nov. 2, 2012
The feedback to the news of Apple CEO Tim Cook's reorganization of his executives has been largely positive, with some suggesting that the news shows that Cook is taking charge at Apple and learning from his mistakes.

The feedback to the news of Apple CEO Tim Cook's reorganization of his executives has been largely positive, with some suggesting that the news shows that Cook is taking charge at Apple and learning from his mistakes.

It seems likely that the investor activity on the stock markets will reflect the sentiment towards the Apple news when they open at 2.30pm GMT. Hurricane Sandy has kept the US stock market closed over the past two days. With Apple having fallen to $604.00 on Friday, after a low of $591.00 during the day's trading, it is likely that trading in Apple will be particularly hectic today. Watch the markets to see how the investors react.

Tim Cook takes charge at Apple

Some are describing the management shake up as issuing in a "true era of Tim Cook."

It is thought that yesterday's announcement that two of Apple's executives, iOS head Scott Forstall and retail head John Browett, were to leave the company was intended to restore peace at Apple.

There have been suggestions that under the late Steve Jobs' rule those managers with big personalities were kept in check because Jobs always had the last word. For example, reports have claimed Ive and Forstall had clashed to the point where they would refuse to be in the same room. "They didn't cooperate at any level. They always let Steve decide," claimed a Wall Street Journal source.

WSJ sources claim that Forstall recently claimed that there is no "decider" with Jobs gone.

That report suggests that the shake-up demonstrates Cook's resolve to tackle the personnel issues that Jobs had let fester. Jobs' departure "forced those clashes into the open", according to WSJ sources. Browett is also said to have been "unpleasant to work with", people close to the situation told WSJ.

The management changes are being interpreted by some as Cook's attempt at steadying the ship.

However, as the Wall Street Journal notes: "The latest changes bring some risks. It fails to address the question of who will fill Mr. Jobs's role as Apple's ultimate decider on products. Mr. Cook has said he spends less time on products than Mr. Jobs and has empowered individuals to run their groups. It also creates a new hole in product leadership. Mr. Forstall, for one, was seen by many as the Apple executive most knowledgeable about software at a company stacked with hardware pros."

Tim Cook's mistakes

The news that Forsall and Browett are to leave Apple also highlighted one of Cook's biggest mistakes since he took hold of the reins at Apple. Browett was Cook's first hire having interviewed Browett personally, and that raises questions about how good a judge Cook is.

 

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