Tech giant Apple on Monday named insider Kevan Parekh as chief financial officer, replacing veteran Luca Maestri, who will step down on January 1, 2025.
The leadership change comes ahead of the launch of multiple Apple products this fall, which analysts are calling the biggest software upgrade for the iPhone.
It includes artificial intelligence (AI) features, which are crucial for Apple to reverse declining global sales, particularly in China, and better compete with rivals that have rolled out AI upgrades.
Parekh, who has been with Apple for more than a decade and joins the company’s executive committee, most recently served as vice president of financial planning and analysis.
“It appears the transition to the new CFO is planned and orderly, which is the main question. Maestri staying with Apple is also very important because it removes the risk of financial questions,” said Gil Luria, an analyst at DA Davidson.
“(Parekh) will need to continue prudent capital management but may also be tasked with restarting Apple’s exploration of add-on acquisitions.”
Before joining Apple, Parekh held leadership positions at Thomson Reuters and General Motors.
Apple said Maestri will continue to lead the company’s business services teams, including information systems and technology, information security, and real estate and development. He will report to CEO Tim Cook.
During Maestri’s tenure, Apple doubled its revenue, with services revenue increasing more than fivefold.
“Apple filling the role with an internal candidate will help smooth the transition. Any change of this magnitude comes with some uncertainty, particularly given Maestri’s consistency and track record of execution,” analysts at Piper Sandler said in a note.
Earlier this month, Apple reported that iPhone sales beat expectations in the third quarter and that the company expected even higher profits as it uses artificial intelligence to attract buyers. However, overall sales in China disappointed.
iPhone sales have declined in recent years due to a lack of significant upgrades to newer models and competition from Android smartphone brands that offer advanced specs at lower prices.
At its developer conference in June, Apple announced a series of AI features dubbed “Apple Intelligence,” including a revamped Siri and integration with ChatGPT.
Shares of the iPhone maker recently fell nearly 1 percent during the trading day.
© Thomson Reuters 2024
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