Analyst: Apple’s Transition to Cook will be Smooth

| Apple Stock Watch

APPLSteve Jobs resigned as Apple’s CEO on Wednesday, and was replaced by Tim Cook, who has been running the company in his absence. UBS analyst Maynard Um expects Mr. Cook’s transition from interim CEO to full time CEO should be smooth, and that Apple has a well planned strategy in place moving forward.

“We expect there to be no transition issues as Cook had been running daily operations as interim-CEO,” Mr. Um said. “From a longer-term perspective, we believe Apple’s strategy is well laid out and believe Cook and the managemet team will continue to execute.”

While Mr. Jobs is giving up his role as CEO, he isn’t leaving the company. He is staying on as chairman of the board, and is expected to have at least some level of input in the company’s activities.

“I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple’s CEO, I would be the first to let you know. Unfortunately, that day has come, Mr. Jobs said in his resignation letter.

The announcement sent Apple’s stock down, but Mr. Um expects the company will still be fine financially. “From a sentiment perspective, we believe investors have been anticipating this announcement and believe it is reflected in the multiple,” he said.

Mr. Um is maintaining his “Buy” rating and US$510 target price for Apple’s stock. Apple is currently trading in the pre-market at $366.50, doen 9.68 (-2.57%).

Comments

Lee Dronick

From what I am seeing the NASDAQ overall is down thought Google is up slightly.

jsbow-long

Since you’ve included a stock quote graph, I thought I’d add that this time may have been as good a time for Steve Jobs to do what was eventually needed - resign.  I’m guessing that this is a strategic move not a necessity - yet.  1.) The company is at its top (both in stock value and in penetration into customers perceptions) throughout it’s history. It can go further; there is space for that - witness the wintel decline (see hp leave the ...) and as they decline more space opens for Apple. 2.) Steve has been able to look at Tim Cook’s “audition” and the rest of the Apple employee responses. I’ll bet Steve has been watching the way Apple practices (processes really) has worked and how the resulting hardware/software performs while he was away.  3.) Steve is still there and likely, mostly functional - in other news he worked a full day yesterday (Wed Aug 24th). He is not saying that he’s walking away, just the opposite. He recommended Tim Cook for CEO - he knows and trusts Tim and the team that he set up.  4.) Steve will act consistently with his history (from his comments to the graduating class of Stanford in 2005. “If today were the last day of my life, would I want to do what I am about to do today? And when the answer has been ‘No’ for too many days in a row, I know I have to change something.”) He has ever been at the leading edge of technology. I’m bet that he continues to do so, as he indicated in his letter to the Apple community - in a different role.

In short this was a reasoned and time chosen action for the betterment of Apple. If you like what Steve has done in the past (overall) then this is more of the same.

Lee Dronick

Since you?ve included a stock quote graph, I thought I?d add that this time may have been as good a time for Steve Jobs to do what was eventually needed - resign.? I?m guessing that this is a strategic move not a necessity

iPhone5 is looming on the horizon and who knows what other rabbit is in the hat that could be pulled out to distract from Steve’s departure.

John Dingler, artist

Jeff, what is the average longevity of a replacement CEOs who have been appointed by an outgoing CEO?

What is the average longevity of a replacement CEOs who have been appointed after the death of the previous CEO?

What is the average quality of performance of replacement CEOs who have been appointed after the death of, or appointment by, the previous CEO?

I would love to see these stats.

iVoid

“Mr. Um is maintaining his ?Buy? rating”

I’m not sure I’d take stock advice from someone called Mr. Um. He doesn’t sound so sure of himself. smile

mhikl

Jeff, what is the average longevity of a replacement CEOs who have been appointed by an outgoing CEO?

Apple dusts average from its shoes with every step. I don’t see that changing anytime soon.

RonMacGuy

I?m not sure I?d take stock advice from someone called Mr. Um. He doesn?t sound so sure of himself.

Good one, iVoid!!  LOL.

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