Apple (AAPL) is shaking up its hardware unit as the company faces growing pressure to add artificial intelligence (AI) capabilities to its consumer electronic devices such as the iPhone.
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Apple’s Chief Hardware Officer Johny Srouji is undertaking a leadership and structural reorganization within the Silicon Valley-based company. The changes are designed to speed up development of future devices and integrate in-house silicon teams more closely with product teams.
The changes come ahead of John Ternus taking over as Apple’s new CEO on September 1, replacing Tim Cook who has been in the position for more than a decade. Apple is under pressure from analysts and investors to include AI in its devices that also include the iPad and Apple Watch. The company is expected to launch a new Siri digital assistant with AI capabilities later this year.
Apple’s earnings per share. Source: The Fly
Changes at Apple
Changes to Apple’s hardware team include Kate Bergeron stepping down from leading the overall product design group. Her responsibilities will be divided between two deputies: Shelly Goldberg will oversee Mac product design and while Dave Pakula will oversee Apple Watch, iPad, and AirPods.
Additionally, two former deputies of Ternus will now report directly to Johny Srouji. Matt Costello will lead a new Ecosystems Platforms and Partnerships team, and Kevin Lynch will head a special projects group focused on robotics. Sribalan Santhanam, head of silicon engineering, adds oversight of Apple’s silicon engineering teams.
Analysts say the big task ahead for Ternus when he becomes CEO will be to execute a robust AI strategy at Apple, which has been accussed of missing the artificial intelligence boom.
Is AAPL Stock a Buy?
Apple stock has a consensus Moderate Buy rating among 29 Wall Street analysts. That rating is based on 18 Buy, 10 Hold, and one Sell recommendations issued in the last three months. The average AAPL price target of $318.75 implies 6% upside from current levels.
