Apple Inc (NASDAQ: AAPL) is facing renewed scrutiny over its leadership as the stock continues to underperform in 2025.
Recent reports suggest the titan is preparing a new product lineup for early 2026, including a budget iPhone 17e, refreshed iPads, and MacBooks, but concerns persist over slowing growth and delayed innovation – prompting some analysts to question whether CEO Tim Cook should step aside.
LightShed Partners’ expert Walter Piecyk, for example, argues AAPL needs a “product-focused” chief executive to navigate the AI era – warning that the company risks falling behind if it doesn’t adapt its leadership strategy.
Note that Apple stock is currently down more than 15% versus its year-to-date high in February.
Why has Apple stock fallen out of favour?
Apple shares are struggling because of two big challenges.
One, a lack of clarity on its AI strategy, Craig Moffett – the founder of MoffettNathanson – told CNBC in an interview today, noting the giant’s lag in delivering compelling on-device intelligence.
Secondly, Moffett pointed to external pressures like Trump tariffs and supply chain complications in China.
While Tim Cook began shifting production to India a decade ago, Moffett emphasized that “these are hard problems to solve.” That said, AAPL shares are, nonetheless, up more than 20% versus their year-to-date low at the time of writing.
Is hiring a new CEO the solution for AAPL shares?
On “Squawk Box”, Craig Moffett disagreed that replacing Tim Cook as the chief executive is the answer to Apple’s problems – noting the company’s stock price has increased 15-fold during his tenure.
According to the industry expert, Cook has been “extraordinarily successful” – but expecting a top executive to single-handedly drive product breakthroughs is unrealistic.
Moffett also hailed Cook’s long-term planning, such as shifting production to India, which he said shows strategic foresight.
Note that Apple shares currently pays a dividend yield of 0.49% – which, while not much, is still an additional reason to own the tech stock.
What’s the fix for Apple Inc then?
On the same CNBC interview, Dominic Rizzo of T. Rowe Price argued Apple’s core issue is not hardware – it’s AI software.
“They need to make some fairly drastic changes on the AI side to get that upgrade cycle back,” he said, pointing to elongated replacement timelines and underwhelming AI features like Siri and on-device models.
Rizzo suggests Apple consider acquisitions, such as Perplexity AI, to accelerate its capabilities. While the iPhone remains “the most important product in the world,” Apple’s failure to deliver compelling AI experiences has left it trailing competitors.
A strategic pivot – whether through partnerships or acquisitions – may be essential to reignite investor confidence in AAPL stock and restore growth momentum, he concluded.
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