Apple Inc. (NASDAQ:AAPL) shares ended at $595.32, down 1.44% in Wednesday’s session, amid investors getting wary about the changes in management. On Monday, the company announced that mobile software developer Scott Forstall and retail chief John Browett will not be with Apple from 2013.
Share price of the company was in the correction territory the week before and has gone down more than 15% when compared to their epic rise on September 21 after the iPhone 5 was revealed. There have been significant changes to the core team – Jony Ive, who used to manage the hardware design team has been promoted and will now oversee all of design including software that was previously Forstall’s territory. Tim Cook sent an email to Apple staff stating that they are looking towards better collaboration when it comes to hardware, software and services teams at all levels.
There have been theories floating about regarding Forstall’s departure but the majority is agreeing that it is due to the flawed mapping tool that Apple released with its new iOS update. The tool is full of errors and customers have constantly complained that the app gives incorrect directions and is missing loads of data. Apparently, Forstall did not sign an apology stating that he is responsible for the mapping tool, which led to his resignation.
There are speculations about John Browett too. He replaced Ron Johnson in the company, before which he was in charge of a retail operation called Dixons in
and the performance was extremely poor. Browett comprised on customer
satisfaction by cutting down staff at retail outlets to increase profit
margins. Tim Cook will man the position for now.
Brian Sozzi, chief equities analyst at NBG Productions states that their cost per unit has not increased which is a promising trend and will take the company to greater peaks of success in 2013.