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Investing.com -- Apple COO Jeff Williams, once considered a frontrunner to succeed CEO Tim Cook, will retire later this year, marking the second major C-suite exit in eight months.
Morgan Stanley (NYSE:MS) called the move “a continued changing of the guard,” noting that while Williams’ contributions were significant, the transition appears “pre-planned” and unlikely to disrupt the business.
“Mr. Williams will remain a key exec in charge of design and other functions until his retirement later this year,” the firm wrote. His departure follows that of CFO Luca Maestri and adds urgency to the ongoing question of Apple’s CEO succession planning.
Although Tim Cook shows no signs of stepping down imminently, Morgan Stanley said, “This is already the most received question we’ve fielded from investors.”
Incoming COO Sabih Khan, a 30-year Apple (NASDAQ:AAPL) veteran, is expected to provide continuity. “Major changes to Apple’s operations strategy and/or supply chain management are unlikely,” Morgan Stanley wrote.
However, Williams’ oversight of Apple’s design team, the Apple Watch, and health initiatives raises questions.
With Khan not taking over design responsibilities, “design will then be overseen by CEO Tim Cook,” analysts said, a shift from Apple’s post-Jony Ive structure.
“We’d expect that eventually a new design head emerges, or Mr. [John] Ternus and Mr. [Craig] Federighi absorb additional design responsibilities,” stated Morgan Stanley.
While the bank does not anticipate operational disruption, the retirement “lends credence to reporting from Bloomberg a year ago that Mr. Ternus is likely next in line whenever CEO Tim Cook decides to step down, given Apple’s tendency to promote from within.”