Tuesday, October 30, 2012

Apple Inc. (NASDAQ:AAPL) Spooks Investors By reshuffling top management

Apple Inc.(NASDAQ:AAPL) is indulging in sweeping reshuffle among its top management, following the embarrassing flaws in its mapping software and other issues related to its new operating system.

First on the hit list to be replaced is software Chief Scott Forstall, who was responsible for the development of the new mapping software that was widely criticised. He was also one of the architects of the iPhone's voice-enabled assistant Siri.

Forstall will leave Apple next year and serve as an advisor to Chef Executive Tim Cook in the meanwhile.

Incidentally, he was seen as the future CEO of the company. Apple itself described the move as a way to increase collaboration across its hardware, software and services businesses.

Analysts however feel that Forstall has been made the scapegoat for the botched up software, though criticism had been calling for his head ever since the errors in the application became widespread.

Forstall's job will be taken over by Cue, who is the head of the company's Internet Software and Services and is responsible for its App Store and iTunes Store.

The company is also aiming to replace retail chief John Browett, who recently created a controversy when he decided to reduce the number of retail store employees.

The retail team will report directly to Tim Cook.

Apple's fiscal fourth quarter results did not match up to expectations with the company selling lesser iPads than had been anticipated.

It has also given a conservative outlook for the holiday quarter saying that the costs associated with launching a number of products would eat into its profits.

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