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 UK
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.
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