The cocaine nose jobs of Wall Street have given the thumbs down to Apple CEO Tim Cook’s new dream team of managers.
Apple shares have been falling after the company’s tablets failed to match expectations and the Apple Maps complete fiasco. Even the Wall Street Journal’s Walt Mossberg has been starting to utter criticisms about the company and the New York Times was not in full-on gush mode about the iPhone 5.
Investors were stunned this week by what appeared to be an episode of Game of Thrones, sans dragons, which took place at Cupertino. Chief mobile software architect Scott Forstall was sent to the wall and retail chief John Browett ended up with his head on a spear.
Forstall was unpopular with fellow managers at Apple HQ but had a lot of support from Steve Jobs for his ideas who kept him in place as his loyal hound. Browett was unpopular with retail staff who did not like his ideas to reduce staff while dealing with more customers and increasing profits.
Wall Street has been worried that the mantel of Jobs has not fallen upon his successor and the company might lose its edge. The feeling is that Cook might be copying Microsoft and falling thanks to internal empire building among senior executives.
Shaw Wu, an analyst with Sterne Agee, told Reuters that there’s some uncertainty in the management and there is some infighting, post-Steve Jobs.
Cook’s new inner circle has some convincing to do.
Keith Bachman, analyst with BMO Capital Markets, said the departures are a negative, Forstall in particular added value to Apple.
Forstall battled with Sir Jony Ive over Apple’s designs. Ive, is said to prefer a more open approach, which could mean a slightly different design direction on the icons. Ive was the big winner in the latest reshuffle and took over Forstall’s empire.